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Home My WebLink AboutRIVERA, HECTOR C. & ITZIAR CUESTA-APARICIO - 1994-09-01 J J OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Future City Clerks and Deputy City Clerks FROM: Janelle Case, Deputy City Clerk per instructions by Connie Brockway, City Clerk SUBJECT: Down Payment Assistance Forgivable Loans DATE: September 16, 1999 The attached documents are included in this file to assist you in the future to determine the forgiveability of the down payment assistance loans. i DOWN PAYMENT ASSISTANCE PROGRAM -pacific Park Villas ........ -- ...... __. --- - -- --- Council/Agency Loan No. Name Property Address Amount Date Caril_lo, Ana --- — -- --- - .... -- 7861 -Ha . . --- f r Drive#102 92648 35,000 1/319� 95-02 Lawrence, James/Jeanette ----- 18051 Joyful Lane- -._. _... ._ e#101A 92648 35,000 113/95 I 95-03 Wong, Wesley 7861 Happry Drive#202 92648 35,000 113195 V 95-04 Hocker, Christopher&Vandereb, Gayle 7861 Happy Drive#101 92648 35,000 113195 95-06 Rivera, Victor& Burgess, Debra 18061 Joyful Lane#104 92648 35,000 413195 96-01 H.... . q ..._._..._. _._... �/ eckethorne, SeanlJac uelyn 7871 Happy Drive#102 92648 35,000 1116196 1805,1 .-..__.----- _.... _..._---...._..... --'---. .. . _.... . .. Joyful Lane#104 92648 35,000 314196 96-03 Wienfeld, Julie _ 18061 Joyful Lane#205 92648 35,000 411196 96-04 Peltier, Edward 7871 Happy Drive#201 92648 35,000 7/15/96 Waliace, Barbara Jo 18051 Joyful Lane#205 92648 35,000 815196 96-06 Murch, Gregory s. 18051 Joyful Lane#102 92648 35,000 815196 97-01 Krue ck, Deborah J. 18061 Jo ful Lane#103 92648 35,000 1121/97 97-02 Osterhauelt, RobertlKathy 18061 Joyful Lane#102 92648 35,000 4130197 97-03 Hosseinali, Faroukh 18061 Joyful Lane#201 92648 35,000 515197 ennw nn��n nr nnn -r i.l In'7 i•1 ' 97-04 ITorchione, Richard 18051 Joyfui Lane 4201 9264o 35,0001 • - i �J CITY OF HUNTINGTON BEACH Inter-Department Communication TO: Gus Duran, Economic Development FROM: Gail Hutton, City Attorney DATE: June 1, 1999 SUBJECT: Determination of Loan Forgiveness RLS 99-359 INDEX: BACKGROUND You have asked for a determination of whether several loans made by the City of Community Development Block Grant funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSWER Yes, if they were funded with the first S 100,000 appropriated for this program. ANALYSIS As part of the 1993-94 CDBG program the City Council approved S 100,000 as a pilot program to provide down payment assistance to moderate income households. We have reviewed several RCAs submitted by your department to the City Council for implementation of this program. The RCAs we reviewed were the originals in the City Clerk's office. From our review of these documents, we have developed the following chronology: 10/25/93: The City Council approved sample loan documents and four participants: Diane Culaciati, Michele Tullock, Osman Taban, and Caroline Sutherland in the total amount of S40,475. (RCA attached hereto as Attachment 1)_ 1 , 4/s:4-9911'4emos:Duran527 11/15193: The City Council was requested to approve and additional S100,000 in CDBG fonds for the program. The Council deferred the item to December 6, 1993. (RCA attached hereto as Attachment 2). 12/6/93: The City Council approved three more participants in the original program: Michelle Schmaderer, Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed.E (RCA attached hereto as Attachment 3.) 12/20/93, Item E-17: The City Council approved an additional participant in the program, David Dixson, for the amount of S 10,000, and increased the amount for participant Nicholas Kormeluk from S8,600 to 510,600. (RCA attached hereto as Attachment 4.) 12/20/93, Item F-2: The City Council approved an additional S 100,000 for the program, but changed the program to require repayment of these additional funds. There are rivo important attachments to this RCA. The first is entitled "Approved Participants," and lists the following six participants: Culiaciati, Taban, Sutherland, Schmaderer, Kanarski, and Kormeluk, in the total amount of S61,952.2 The second important document attached to this RCA is the list of"Pending Participants." It shows eight more participants in the total amount of S59,100. It is not determinable from this RCA whether these persons were intended to be in the grant program or the loan program, and we do not know when, if ever, these participants were actually approved. 1/3/94: The City Council approved three more participants in the original, non-repayment program: Judy Young,Treva Love, and Ellen Ommondson, in the total amount of 531,000. When added to the previously committed amount of S73,952, the total amount of funds committed is S 104,952. This exceeds the original S 100,000 appropriated for the original,non- repayment program. The analysis portion of this RCA. states that "the approvals herein will be the first funded with the new appropriation,"which implies that at least a portion of the funds used for these participants were part of the funds that were conditioned for repayment, as opposed to the original,non-repayment funds. However, the total numbers listed are roughly consistent with the original $100,000 set aside for the grant program. The total amount of loan funds used is less than $5,000. (RCA attached hereto as attachment 5). Our review of the above documents and chronology o:"events indicates that the Council did not intend to require repayment of the original S 100,000 appropriation. Clearly, then, the loans made to Culiaciati,Taban, Sutherland, Schmaderer Kanarski,Dixson and Kormeluk are forgivable, because they were funded using S73,952 of the first S 100,000 appropriation. The problem is presented by the transactions with Young, Love, and Ommondson. We believe that the Council's intent was to not require repayment from these participants. Unfortunately, there was only$26,048 of the original, non-repayment: funds available to these participants, and collectively, they received S31,000. Thus, a small portion of the funds used for these 'Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council meeting of 12/6,193,we believe that this list has been erroneously added to the 12/6/93 RCA. 2 Please note that earlier during the same meeting,the Council had also approved David Dixson for$10,000, and an additional S2000 for Kormeluk. Thus the amount conunitred from the original$100,000 was actually S73,952. 2 4/s:4-99\1 emos:D-_:ran52 7 i participants must have come from the second S 100,000, which the Council appropriated with the condition that the loans be repaid, not forgiven. CONCLUSION There are tkvo conflicting Council actions. The Council's intent was to include participants Young, Love and Ornmondson in the original, forgivable loan program. However, it appears that a portion of the funds actually used for the loans to Young, Lone and Ommondson were from the second appropriation of funds, which included a repayment condition. Therefore, we recommend that the Council clarify this conflict by approval of an RCA that forgives the loans made to Young, Love and Ommondson. Gail Hutton City Attorney 3 41s:4-99Memos:Duran527 Council/Agency Meeting Held: S'-12-29 Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied City Clerk's ignature C f- I3,2oc Council Meeting Date: May 17, 1999 Department ID Number: ED 99-29 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION == 7 S"_ SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY- MEMBERS SUBMITTED BY: RAY SILVER, Executive Director I �, J _L PREPARED BY: DAVID C. BIGGS, Economic Development Director SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down Payment Assistance Loans —Approve and Authorize Execution of Documents Statement of Issue, Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of issue: Currently, the down payMent assistance loans matte by the Redevelopment Agency for Pacific Park Villas must be individually approved by the City Council. In order to facilitate transfers of these loans, staff is requesting that the Redevelopment Agency establish procedures for administrative approval of these transactions. Funding Source: None as a result of this action. , Recommended Action: Motion to: 1. Authorize the Executive Director and the Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents necessary to transfer to new low and moderate-income homebuyers the Down Payment Assistance Loans made by the Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). 2. Authorize the Executive Director and Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents recessary to subordinate or to reconvey the Agency loans (notes and deeds of trust), as these home owners refinance, sell their homes or meet their loan obligations, as stated in their notes and deeds of trust. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). 6 .5 REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: ED 99-29 Alternative Actions : The Redevelopment Agency can retain the authority to approve the transferability of each and every Down Payment Assistance Loan made on this project. The number of loans originated for this project was 16 loans. This means that each and every time, Agency staff will have to prepare a Request for Agency Action, thereby increasing staff time and costs. It will also delay the ability the sellers and buyers to close escrow quickly. In some cases the delays could cause undue hardship and cause the sale of properties to fall out of escrow. Analysis: In 1996, the Redevelopment Agency made 15 Down Payment Assistance Loans to low- and moderate-income homebuyers purchasing dwellings at the Pacific Park Villas residential project located near Talbert and Beach. The purpose of these loans were to expedite the sales of homes in the Pacific Park Villas project and simultaneously meet the Redevelopment Agency's obligation to assist low and moderate income persons with 20% Set Aside Funds, as required by Redevelopment Law. The loans made to these homebuyers were meant to be transferable to other low and moderate-income families. The City Attorney's Office has been requested to make a determination of the transferability and has rendered a decision indicating that the loans are transferable to other homebuyers that meet the income qualification of having incomes below 120% of the median income for Orange County. (See attached memorandum from the City Attorney's Office). Some of these homebuyers are now ready to move on with their lives and are desirous to sell their properties. To facilitate the closing of escrows without significant delays to sellers and buyers, the Economic Development Department is requesting that the Redevelopment Agency Board authorize the Executive Director and the City Clerk to administratively manage the transferability of these loans. This will permit the Executive Director to execute documents without having to come the Agency Board on each and every loan, especially since these loans were prepared with the identical notes, deeds of trust and Covenants, Conditions and Restrictions (CC&R's). The City Attorney's Office has provided an opinion on the loans' transferability. Environmental Status: NIA Attachment(s): CiW Clerk's Page Number No. R - scripflon 1. City Attorney's Office Memorandum. 2. Sample Loan Documents. 3. List of Down Payment Assistance Borrowers at Pacific Park Villas. RCA Author: Gus Duran X1529 RCAPPV.DOC -2- 05105199 9:34 AM 4 City Attorne 's Office Memorandum LO CITY OF HUNTINGTON BEACH Inter-Department Communication TO: David Biggs, Director of Economic Development FROM: Gail Hutton, City Attorney DATE: April 26, 1999 SUBJECT: Wallace Loan Documents You have asked several questions concerning the Wallace loan documents. 1. Is the loan transferable? A. Yes, with the Agency's prior written consent. See Section 18 of the Loan Agreement. 2. What are the income limits for purchasers? A. No greater than 120% of median income (moderate income)pursuant to Section 9 of the Loan Agreement. 3. Does the new buyer need to meet the income requirements of the CC&Rs? A. Yes. 4. Is the Equity Share payable if the buyer qualifies under the CC&Rs? A. Yes. 5. Can the interest be forgiven if the property's fair market value does not exceed 5% per year? A. No, unless the Agency approves forgiving the interest. 6- Should the Equity be calculated minus the selling expenses? A. No. Please contact me if you have any further questions. Gail Hutton City Attorney 4/s:4-99.M CMOs'B iggS426 �11 > CITY OF HUNT.INGTON BEACH Inter-Office Communication e Economic Development Department TO: Gail Hutton, City Attorney Pahl D'Alessandro, Deputh City Attorney FROM: David C. Biggs, Director of Economic Development DATE: April 20, 1999 SUBJECT: First Time Home Buyer Loan for Barbara Jo Wallace Yesterday, April 19, 1999, Gus Duran, the Department's Housing and Redevelopment Manager met with Ms. Barbara 3o Wallace, her real estate agent and other property owners of the Pacific Park Villas project to discuss their.concerns regarding First Time Homebuyer loans made to them by the RedeveIopme:nt Agency. As you may recaII, at a previous City Council meeting; Mr. Bob Osterhoudt made a plea to the City Council requesting assistance for the property o«-ners of this complex. In addition, Ms. Wallace has written to the Mayor and the Cin• Attorney (April 2, 1999) requesting the Redevelopment Agency's assistance in resolving her needs to sell her property with the Agency's assistance. The Economic Development Department is ready and willing to help Ms. Wallace and the other property owners sell their homes, as they need to move on with their lives when they desire, but we are in need of a legal opinion regarding the following issues: 1. Is the loan made to Ms. Wallace, which is similar to those made to the other buyers of Pacific Park Villas, transferable? 2. What are the income Iimit requirements for the purchasers of these homes when a property o,�vmer sells his/her home? (See _attached 1999 Orange County Affordable Housing Woiksheet issued by the law firm of Stradling, Yocca, Carlson& Rauth.) 3. Does a new buyer need to meet the:income requirements established in the CC& R's? 4720199:Gus Duml-loudmWALLACE 4. Is the "Equity" payable if the sellers sell their home to a buyer that meets the income requirements established in the mote and the CC&RV 5. Can the interest be forgiven if the property's "fair market value"does not exceed 5% per year? 6. Should the "Equity" be calculated minus the selling expenses (See Section 4A of Loan Agreement)? We are requesting an immediate opinion on these issues, as Ms. Wallace has already purchased a home in the State of 1N'ashington and has a pending sale of her property in Huntington Beach in the works, subject to the Agency's determination on these issues. At the moment, her pending sale is being held up because neither the seller, nor the buyer knows what to do with the information on the note and deed of trust, or the CC&R's. Attached are copies of Ms. Wallace's documentation. These are the following: 1. Loan Agreement to Ms. Wallace from the Redevelopment Agency. 2. Promissory Note 3. Deed of Trust with Assignment of Rents 4. Lending Instructions 5. Certificate of Proposed Transferee 6. Declaration of Conditions, Covenants and Restrictions for Property 4/2Q/99.Gus Duran:Houdev:WALLACE Sample Loan Documents ATTACHMENT #2 r LOAN AGREEMMENT THIS LOAN AGREEMENT (the "Agreement") is made this 5t� day of 19 by and between BARBARA JO WALLACE ("Participant") and the +DVELORIENTYq(,, AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 18051 Joyful Lane. #205 Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to-purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach-(the "City"). E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows.- 1. A tency Loan. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Agency Loan proceeds into escrow with TIMPO ESCRow, INC_, A CALIFORNIA CORPORATION (the "Escrow Agent") (Escrow No. 9442—e ). The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a Loan Agreement Page l of 8 41s.(;:4-96-Agrcc:Wal lace:I canagcc R S 9G-523 7/26195 promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance of Property. Participant shall maintain the improvements on the property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Due on Sale Transfer or Ref nancin Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest.accrued thereon shall be due and payable upon (1) such sale or transfer, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or (III) Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the terra of the Agency Loan_ 4. Equity Sharing. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: I. Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) Loan Agreement Page 2 of 8 RIS 96-523 7126196 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9.. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) I.I. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent {14%) Loan Agreement Page 3 of 8 4`s`G:4-96-Agrcc:Wallaccaoarragrce RGS 9G-523 712fi196 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent {12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent 0%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made v:hile Participant owned the Property may be added to the Purchase Price if Participant complies with the following: Na capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion . of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars (S2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a forth reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 4'e,(;4-9G-/lgrcc:WallaccaOsnagrcc RfS 96-523 712Gd9G A. E uit y Share Upon Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120% of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such income limit. If the Buyer does no exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. Equitv_Share Upon Refinancing or Failure to Occupy. The Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan to become due and payable. The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property. The Agency shall appoint a certified, independent,'appraiser to conduct an nwaisal.ofthe Property. at Participant's expense, and Participant agrees t Fiat in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between the Purchase Price and the appraised value of the Property as of the time of such refinancing. This Agreement shall be terminated upon the Participant's repayment of the Agency Loan and payment of the Equity Share Amount as provided in this Agreement. C. Expiration of Equity Share Obligation. In the event the Participant does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of this Agreement before the Thirtieth anniversary of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share Amount to Agency upon.any later sale, transfer or refinancing. 5. Occupancy Standards.The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. b. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income. • 7. Loan Servicing. The Agency may contract with a private tender to originate and service the Agency Loan. 8. Participant Financin . Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust Loan Agreement Page 5 of 8 4�sIC:4-96-Agrcc:W al lacc:loanagrcc IZI S 96.523 7/26196 f shall only be subordinated to a first lien on the Prope ty held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the four: of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non-Waiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Partigipant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, no any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty(30) days after receipt of notice from the other party constitutes a default under this Agreement, provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying; the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. I I Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Page 6 of 8 41skG:4-9 G-Agrcc:W all acc:lomiagrec Rl S 96-523 712G19G (a) . Disclosure Statement; (b) Promissory Note; (c) Agency Deed of Trust; and (d) Declaration of Conditions, Covenants and Restrictions of Property. Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 14. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Governing Laws. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 16. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. Agency Ma Ass! n. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 Czs(]:4-9G-Agrcc:Wallacc:Ioanagrcc Itl S 76-523 712G�1G agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" r Date: AUGUST 13, 1996 19 By %��:z��c2� •� LL�,f"mac BARBARA JO WALLACE Printed Name: Date: 19 By: Printed Name: Date: , 19 Bv: Printed Frame: THE REDEVELOPti4ENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic Date: ��,c�au„ , 19% By- Chairman ATTEST- APPROVED AS TO FORM: l J� Agency Clerk %CA&Agency Counsel REVIEWED AND APPROVED: INITIATED AND APPROVED: c Executi e irector `/1111 Direckor of Economic evelapment Loan Agreement Page 8 of 8 4\s1G:4.96-Agree:W a 11 ace I oana grc c RIS 9G-523 712G19G i EXHIBIT A LEGAL DESCRIPTION OF PROPERTY PARCEL 1: An undivided one twenty second ( 1/22) fee simple interest as a tenant in comet- on in and to all of the Common Area defined in Declaration referred to below and described in the condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on Pugust 25, 1994 as Instrument No. 94-0525335 of official Records of Orange county, over Lot I of Tract No. 14828, in the city of Huntington Beach, County of orange, State of California, as per map filed in Book 706, Pages 27 to. 29 of Miscellaneous t-laps, in the office of the county Recorder of said county. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit 11o. 22 consisting of certain airspace and surface elements, as shown and described in i the condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, conditions and Restirictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as instrument r,o. 94-0525336 of Official Records . Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas.-defined, depicted and assigned on the Plan. Exhibit A to Loan Agreement Page IofI 4',S JAgrcc:h".argo!is:l;xliib itA%07/26/96 . 4 EXHIBIT B PROMISSORY NOTE S 35 000.00 Huntington Beach, California AUGUST 5TB , 19 96 FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The Redevelopment Agency of the City of Huntington Beach ("Holder") at 2000 Main Street, P.O. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing, Thirty-five Thousand Dollars (535,000.00) (the "Note Amount") together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in lawful money of the United States of America and all sums shall be credited first to interest then due and the balance to principal. 1. Interest Rate Simple interest shall accrue on the Note Amount at a rate of five percent (5.00%) per annum. If the fair market value of the Property does not increase at least five percent (5.00%) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. 2. Maturity Date The balance of all unpaid principal and accrued interest shall be due and payable on AUGUST 5TH 20 26 (thirtieth(30th) anniversary date of this Promissory Note). 3. Acceleration The whole of the Note Amount plus accrued interest and all other payments due hereunder shall become due and be immediately payable to the Holder by the Maker upon the occurrence of any one of the following events: (a) Maker sells or otherwise transfers title to the property; or (b) Maher refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess ofthe then current loan balance of such prior lien or extends the amortization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as hereinafter defined). "Exhibit B" to Loan Agreement Page I of 3 4\s\4.9GAgscc:W atiSacc:CxhiUit[S RLS 96-523 712G/9G 1 4. Security for Note This Promissory Note shall be secured by a second deed of trust encumbering the Property (tile "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee. 5. Prepayment of Note Amount Maker may prepay to Holder the full Note Amount, together with simple interest thereon at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note Amount. 6. Loan Agreement This Promissory Note is made and delivered pursuant to and in implementation of Loan Agreement entered by and between the Holder and the Maker dated AUGUST 5, 19 (the "Agreement"), a copy of which is o:i file as a public record with the Holder and is incorporated herein by reference. The Maker acknowledges that but for the execution of this Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated therein. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement. 7. Holder Mav Assign Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. 8. Maker Assignment Prohibited In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. Attorneys' Fees and Costs In the event that any action is instituted to enforce payment under this Promissory Note, the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys' fees. 10. Non-Waiver Failure or delay in giving any notice required hereunder shall not constitute a waiver of any default or late payment, nor shall it change the time for any default or payment. "Exhibit B" to Loan Agreement Page 2 of 3 CA4-96Agrcc:Wallace:Lxhib ilf 3 R S 90.523 712096 H. Successors Bound This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. 11MAKER" Printed Name: BAR.BARA JO WALLA' By: Printed Name: By: Printed Name: "Exhibit B" to Loan Agreement Page 3 of 3 4}s\4-96A%rcc:W all acc:lixhibit B RLS 96'523 7l2G19G RECORDING REQUESTED BY ) AND WHEN RECORDED RETURN TO. ) } Redevelopment Agency of the City of ) Huntington Beach ) 2000 Main Street ) Huntington Beach, California 92648 ) Attn: Agency Clerk ) [space Abo :This Line Fc: Use This document is exempt from retarding fees puxsuant to Government Code Section 6I03. DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this 5TH day of AUG. , 19 96, by and among BARBARA JO WALLACE, whose address is 18051 Joyful Lane, '205, Huntington Beach, California(the "Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENTEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, witK Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a Tien thereon or payable under any agreement. "Exhibit C" to Loan Agreement Page 1 of 15 4V G:4-96agree:WalIace:ExhibitC RLS 96-523 7126196 A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Thirty-five Thousand Dollars (535,000.00) with interest thereon according to the terms of a Promissory mote of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof 2_ Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and ever}, obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneflcia-.y and Trustor dated AUGUST 5 , 19 96 , insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To Beep said property in good condition and repair, to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot, to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon, not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary, to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; ,,Exhibit C" to Loan Agreement Page 2 of 15 4\s%G:4-96agrcc:Wa I I]cc:1;xJ1ibitC RI S 96-323 7/2G/9G i (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation- (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail; sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (0 not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all «work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this Paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as maybe required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination "Exhibit C" to Loan Agreement Page 3 of 15 4'''s'G:4-96agrcc:Wa:iacc:GxhibitC KL.S 96-523 7J2 619 6 of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (0 for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary• or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so "Exhibit C" to Loan Agreement Page 4 of 15 4\s%G:4-96agrec: alIace:EANIC RLS 96.523 7126196 expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a [i:•;e rate of interest. S. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any, suit brought by Beneficiary to foreclose this Deed of Trust. 6- To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt Payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or "Exhibit C" to Loan Agreement Page 5 of 15 4\SNG:4-76agrcc:Wal Iacc:EdibitC RLS 46-523 7/26n96 . t thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c)join in granting any easement thereon, (d)join in any agreement subordinating the lien or charge hereof. 1 1. That the lien hereof shall remain in full force and effect durin; any postponement or extension of time of payment of the indebtedness secured hereby, or any pat thereof 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Dote or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of. the property affected by this Trust Deed. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents,; issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver "Exhibit C" to Loan Agreement Page 6 of 15 41s\G:4.96 agrce:w al lace:LxhibilC lti S 96.523 7126196 to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, dnforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. If the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of "Exhibit C" to Loan Agreement Page 7 of 15 41c1GA-96agrcc:Wa11acc:ExhibitC RIS 9G-523 7/26/96 Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. A-ny person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Benefciary at its option may also foreclose on such shares by independent pledge sale, and Trustor w-alves demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute there to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have "Exhibit C" to Loan Agreement Page 8 of 15 4\s\G:4-96 agrce:Wal lacc:CxllibilC RtS 96-523 712G/9G been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed oFTrust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to "Exhibit C" to Loan Agreement Page 9 of 15 4\sIG:4.96agree:Wallace:ExhibitC RLS 96.523 7126196 disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR- By:` A"c,CX.{l:t!r_. t`l (il/y� �,/� BARBARA JO WKLLACE By: By: APPROVED AS TO FORM: Agency Counsel Jc-l4 "Exhibit C" to Loan Agreement Page 10 of 15 4's`•G:4-9Gagree:WalI ace:LxhibitC RLS 9G-523 7l2G19G RIDER TO DEED OF TRUST FIRST TIi`4E 40NIEBUYER DOWNT PAYtifENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5TH , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars (535,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: l. Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8, After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) "Exhibit C" to Loan Agreement Page 11 of 15 4'sIG:4-96agrcc:Wallace:Cxh ibitC 1ZLS 96-523 7/2619 G 10. After thirteenth anniversary but prior to fo-urteenth anniversary: thi,y-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary. thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent(10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent(8%) 23. ,After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) "Exhibit C" to Loan Agreement Page 12 of 15 4%s%CIA-96 asrcc-.W al I acc aixhibitC Iti S 96-573 7/26196 25. After twerity-eighth anniversary but prior to tiventy-ninth anniversary: two percent (2%) 26. A-fter twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars (S2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars (S2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the amount received by Trustor as the Property sale price (as reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (1) the original Property purchase price and (ii) the appraised value of the "Exhibit C" to Loan Agreement Page I3 of 15 4\slG:4-96 agrcc:Wall acc:ExhibitC RLS 96-521 7126196 Property as of the time of such transfer or refinancing. Dated: AUGUST 13, 1996 TRUSTOR &kRSAFRA M WALLACE APPROVED AS TO FORM: fK Agency Attorney z R. -- "Exhibit U to Loan Agreement Page 14 of 15 4Ls%G:4.96agrcc:W allacc:SxhibitG R[S 96-523 7126l96 RIDER TO DEED OF TRUST SUPERIOMY OF FIRST LENDER DOCUMENTS (if required by the First Lender) This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars (S35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender- as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: AUGUST 13, 1996 TRUSTOR: 4f ter . !� �bllr 1_1& APPROVED AS TO FORM. $APM2M Jo LACE Agency Attorney ) "Exhibit C" to Loan Agreement Page 15 of 15 41sNG:4-96ft Ucc:Wallacc:ExhibiLC RIS 96-523 7/26196 CALIFORNIA ALL--PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA _ S S. COUNTY OF ORANGE Oil AUGUST 13, 1996 _-_ Before me, the undersigned, personally am)eared MMRA JO WULACE — - -- — - ---- — personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names) is/are subscribed to the tilithirl instrument and acknowledged to rile that helshelthey executed the same in his/her/their authorized capacily(ies), end that by hislller•/their signalure(s) oil the instrument the person(s) or the entity upol I be!rail of wl Ilcl I the person(s) acted, exEi;uled tl it? instrument. WITNESS my hand and official seal. (Arts area for official nolarlal sear) ,�� t.l DA J.Ci;"?BF_�� r COMM. # 1015344 Sigriatu _ ��' "-� NOTARY PUBLIC-CAI IFORYIA T = 7 ORANGE COUNTY � LIM J. My Comas.E_;.:3_DEG.20,1WZ ffffffffflfftfffffffffffffffffffffiffif OPT-IOi�I L ffflffffftfffflfffffffflfffffffffflfff Though the data below are not required by ia. , they may prove valuable to persons relying on the document and could prevent the fraudulent reattachment of this form. Capacity Clairiied By Signer Description of Attached DOCLIMEIlt �ncJividual I] Corporate Officer , -I Iila oryp- 'r o of t)OCUITi it 'llilas{s) Ll Partners) [J Limited U3,General - Attorney-In-Fact Trustee(s) Humber c'Pages U GuardianlConservator Other: _ Cate of Document Signer Is Representing: Framer of Person(s) or Entlty(les) Slcdnei(s) O!Irer limn Named AF10 r. r - EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCFJPTION PARCEL 1: An undivided one twenty second ( 1/22) fee simple interest as a tenant in common in and to all of the Common Area defined in Declaration referred to below and described in the condominium Plan ("Plan") for Lot 1 of Tract No. 14826, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said county . Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of needs, and in various other deeds of record. PARCEL 2: Unit 11o. 22 consisting of certain airspace and surface elements, as shown and described in i the Condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, conditions and Restrictions and Reservation of Easements for Pacific Park; villas, recorded August 25, 1994 as instrument too. 94-0525336 of official Records . Parcel 4 : Exclusive easements appurtenant to parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas:defined, depicted and assigned oil the Plan. "Exhibit A" to Agency Deed of Trust Pagel of i 41slG:AUcc:hlargolis_CxhC Dccd\07i c6,'S6 RLS 96-127 EXHIBIT D DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) } } } } (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration") is made by and between BARBARA JO WALLACE (the "Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency" or "Covenantee") as of the date set forth below. RECITALS A. Covenantor and the Agency have entered into a certain Loan Agreement dated AUGUST 5 19 96 , (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Covenantor has agreed to subject certain real property (referred to in the Agreement and referred to herein as the "Property") described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. B. The Community Redevelopment Law (California Health and Safety Code § 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW, THEREFORE, the parties hereto agree and covenant as follows: "Exhibit D" to Loan Agreement Page 1 of 9 41s\GA-9 6 Agree;W a{lace:Exh-N-0 RL.S 96-523 7129/96 1. Affordability Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property (the "Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or families of"Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange Co_:1ty median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Hosing Cost (as defined below) to the Covenantor or other persons or families of moderate income. affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government-subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Pe:cent (110%) of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department of Housing and Urban Development) earning between Eighty Percent (80%) and One Hundred Ten Percent (110%) of ti:e Orange County monthly median income, and Thirty-Five Percent (35%) of the monthly median income of any person or family of moderate income which earns more than 0ne Hundred Ten Percent (110%) and not more than One Hundred Twenty Percent (120%) of the Orange Co::aty median income. (c) The covenant contained in this Section 1 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date, 2. Transfer of Property. No transfer of the Property shall occur until the Agency determines (a) that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted to the Agency such information and completed such forms as the Agency shall request to certify the proposed purchaser's intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the Agency an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner-occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the Agency in connection with the Covenantor's original sale of the Affordable Unit, provided that "Exhibit D" to Loan Agreement Page 2 of 9 4Ls\G:4-96Agrcc:W aI I acc:ExhityiiD KES 96-523 7129/96 the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR .A%.SSIGN OF COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONS IDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, :BIND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN"THE FAIR MARKET VALUE OF THE PROPERTY ANC MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANT TOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES INT SETTING THE TRA.NTSFER PRICE THE-PRIMARY OBJECTIVE OF THE AGENCY ANTD THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AINI AFFORDABLE HOUSING COST. Covenantor Initials The covenant contained in this Section 2 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. Non-Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. Covenantor and its successors and assigns, shall refrain from restricting the rental or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, "Exhibit D" to Loan Agreement Page 3 of 9 41s%0:4-96Agrcc:W ali acc:@xltibi[ll RLS 96-523 7/29/96 nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing convenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following, conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." Nothing in this Section 3 shall be construed to authorize the rental or lease of the Property if such rental or lease is not otherwise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants For Benefit of City and Agency. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and the City of Huntington Beach(the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such "Exhibit D" to Loan Agreement Page 4 of 9 41s%G:4-96Agrcc:W a11 ace:GxhibitD KGS 96.523 7/29l96 breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. IN' WITNESS NNrBEREOF, the Covenantee and Covenantor have caused this instrument to f be exeec�u�tted on their behalf b 9 the respective officers hereunto duly authorized, this 13 day ` 96 COVEI\IANTOR RMMARA JO WALLACE APPROVED AS TO FORM: Agency CounselyjL 6 ,Je fv "Exhibit D" to Loan Agreement Page 5 of 9 4\a1G:4-96Agrcc:W allacc:ExhibiCD RLS 96-523 7129196 STATE OF CALIFORNIA ) ss COUNTY OF SANG On AUGUST 13, 1996 before me LINDA J. CAI4IPBELL (name, title, e.g., "Jane Doe, Notary Public"), personally appeared BARBARA JO WALLACE (name(s) of sigaer(s)), personally known to be-- OR-- XX proved to me on the basis of satisfactory evidence to be the person(s) whose namc(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/13er/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s) acted, executed the instrument. `Ytn ss m y hand and official seal. cc LINDA J. CAMPSELL z k. in ';�,� a r.DTAOY PMs ci6Ca5iFORMia ORANGE COUNTY (SignatuA of Notary) ►•Y Comm.i xp�;es DEC.20,1M LINDA J_ CAMPBELL CAPACITY CLAIMED BY SIGNER: xx Individual Corporate Officer(s): Title(s) Partner(s): Limited General Attorney-in-Fact Trustee(s) Guard i an/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT, THIS CERTIFICATE Title or Type of Document DECLARATION OF OCNDITIONS, QDVFNANTS MUST BE ATTACHED AND uFS7xrCTIONS FOR PROP= TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AUGUST 5, 1996 AT RIGHT: Signer(s) Other Than Named Above: "Exhibit W to Loan Agreement Page 6 of 9 4`s1G:4-96Ag:ec:W apace:ExhibhD IUZ 96-523 7129196 STATE OF CALIFORNIA } } ss COUNTY OF On , before me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (name(s)of signer(s)), personally know-ri to be-- OR-- proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and ackno,,vledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by Ifis/hcr/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s) actcd, executed the instrument. Witness my hand and official sea[. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Off`icer(s): TitIe(s) Partner(s)-. Limited General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of pages DESCRIBED Date of Document AT RIGHT: Signer(s) Other Than Named Above: "Exhibit D" to Loan Agreement Page 7 of 9 4\v1G:4-96Agee:W all ace:Exhib itrl RLS 9G-523 7(29(96 STATE OF CALIFORNIA ) ss COUNTY OF ) Oil before me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally kno%%m to be -- OR-- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by liis/her/their signature(s) on the instrument the person(s), or the entity upon behalf of vtifiich the person(s) acted, executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Offrcer(s): Title(s) Partner(s): Limited General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s)or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s) Other Than Named Above: "Exhibit D" to Loan Agreement Page 8 of 9 4�s%G:4-96Agrcc:Wallacc:ExhibitD RLS 96-523 7/29/96 e EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] LEGAL DESCRIPTION EXHIBIT "A" PARCEL 1 : ' S An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to ' all of the common Area defined in Declaration referred to below and described in the ; condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94--0525335 of official Records of Orange county, over Lot 1 of Tract No. 14828, in the-City of Huntington Beach, County of Orange, State of California, j as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the . ; County Recorder of said County. 1 Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other. hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit No. 22 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. ! Parcel 3: non--exclusive easements for access, ingress, egress, enjoyment, drains g � Use, en 7 Y . drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areasEdefined, depicted and assigned on the Plan. 1 "Exhibit W to-Loan Agreement Page 9 of 9 41s1G:4-96 Agree:W al l ace:ExhibitD RLS 96-523 7l29/96 List of Down Payment Assistance Borrowers at Pacific Park Villas RCS► ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Transferability of Pacific Park Villas Down Payment Assistance Loans COUNCIL MEETING DATE: May 17, 1999 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (wlexhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits � Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed In full by the City Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by Cif Attome Not Applicable Certificates of Insurance Approved by the City Attomey) Not Applicable Financial Impact Statement Unbudget, over $5,000) Not Applicable Bonds (if applicable) Not Applicable Staff Report If applicable) I Not Applicable Commission, Board or Committee Report (If applicable) I Not Applicable Finding s/Conditions for Approval and/or Denial L Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED 1�FOR( ,WARDED Adminlstrative Staff Assistant City Administrator Initial City Administrator Initial 6 City Clerk EXPLANATION FOR RETURN OF ITEM: (Below Space For City Clerk's Use Only) RCA Author: Duran at extension1529 �� a�' . .- � �••.5 - - .- 1 e F CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE: June 12, 2000 TO: Gus Duran,Housing/Redevelopment Manager FROM: Joyce DeKreek,Housing/Redevelopment ConsuItan SUBJECT: Research on Loan Forgiveness, 1"Time Home-Buyers Program Redevelopment Set-Aside, $400,000 and Redevelopment Set-Aside, $750,000 I have reviewed our records regarding funding of I"Time Home-Buyers Program to determine the names and amount of assistance which benefited the applicants from the $400,000 in Redevelopment Set-Aside funds approved by the Redevelopment Agency (RDA) at their November 1, 1993,meeting and from the$750,000 in Redevelopment Set-Aside funds approved by the RDA for the Pacific Park Villas at their February 6, 1995 meeting. The Redevelopment Agency approved nine applicants from the$400,000 allocation in conjunction with the City's CDBG 15t Time Home-Buyers Program and one additional applicant for the RDA 1st Time Home-Buyers Program only. The RDA portion of these loans are Bastou($25,000), Dieckmeyer($23,000), Griffen ($25,000), Hoang($23,000), Lawson($23,000),Melvin($35,000), Otto ($23,000), Quick, S. ($16,717), Quick, T. ($25,000),Rivera H. ($25,000). Quick, T. withdrew from the CDBG loan but maintains the RDA loan. These loans total$243,717. The Redevelopment Agency approved fifteen(15) applicants from the$750,000' allocation at Pacific Park Villas(PPV) to participate in the Redevelopment Agency 1st Time Buyer Program. The names and amounts are(Carrillo ($35,000),Forchione ($35,000),Heckethom($35,000),Hosseinali ($35,000),Hacker($35,000), Lawrence ($35,000),Murch($35,000), Osterhoudt($35,000),Peltier($35,000),Rivera-Burgess ($35,000), Wallace($35,000), Weinfeld ($35,000),Wong ($35,000), Krueck($35,000), Margoies ($35,000). These loans total $525,000. Four loans(Melkerson/Uniack, Ojeda,Rene/White, Stratton),previously approved by RDA were not funded. GJjoyccAntermemo Reconvey.doc i � - - - -•- V,_ __��,��Li~� (^'� �` ,,..�� x_'J-� I"THY�•"ry`�l�+ • - • - Or One loan (Wallace)was assumed by another qualified buyer(Stay). Two applicants have paid their loans: Melvin,paid off his RDA loan 10/21/1997 in the amount of$40,794.31 and Hoang, paid off his RDA loan on 12/21/1999 in the amount of $47,208.80. A check in the amount of$4,116.57 was issued to Mr. Hoang for overpayment, reducing the loan repayment to $43,092.23. These loans accrue simple interest at 5%, due and payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brockway, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development John Reekstin,Director of Administrative Services Dan Villella, Director of Finance Jake Rahn, Administrative Services Hank Reveles, Sr. Accountant Joyce de Kreek, Economic Development Steve Holtz, Development Specialist Gajoycelintermemo Reconvey.doc PACIFIC PARK VILLAS ($750,000—RDA) 95-01 (2-1-95) Carillo, Arm S 35,000 7861 Happy Drive,#102 RDA 12-19-94 95-02 (2-1-95) Lawrence, James and Jeanette $ 35,000 18051 Joyful Lane, #16 RDA 12-19-94 95-03 (2-1-95) Wong, Wesley Chi $ 35,000 7681 Happy Drive,#202 RDA 12-19-94 95-04 (2-1-95) Hocker, ChristopherNandereb, Gayle$ 35,000 7681 Happy Drive,#101 RDA 12-19-94 95-06 (4-12-95) Rivera, Victor/Burgess,Debra S 35,000 18061 Joyful Lane,#104 RDA 4-3-95 96-01 (1-24-96) Heckethorne, Sean&Jacquelyn $ 35,000 7871 Happy Drive,#102 RDA 1-16-96 96-02 (3-7-96) Margolis, Peter $ 35,000 18051 Joyful Lane, #104 RDA 3-4-96 96-03 ( Weinfeld,Julie S 35,000 18061 Joyful Lane,#205 RDA 4-1-96 96-04 (7-17-96) Peltier,Edward S 35,000 7871 Happy Drive,#201 RDA 7-15-96 96-05 (8-7-96) Wallace, Barbara Jo $ 35,000 18051 Joyful Lane,#205 RDA 8-5-96 96-06 (8-7-96) Murch, Gregory $ 35,000 18051 Joyful Lane,#102 RDA 8-5-96 97-01 (1-29-97) Krueck,Deborah S 35,000 18061 Joyful Lane, #101 RDA 1-21-97 97-02 (4-30-97) Osterhoudt,Robert and Kathy $ 35,000 18061 Joyful Lane,#102 RDA G:ljoyccnntcn=mo Reconvey.doc zz WIT - _ �^ >> fir-ribp-_ � 97-03 (5-14-97) Hosseinali, Faroukh S 35,000 18061 Joyful Lane,#201 RDA 97-04 (7-23-97) Forchine,Richard $ 35,000 18051 Joyful Lane,#201 RDA 7-21-97 1st TIME BUYER ASSISTANCE ($400,000 RDA) 94-4(2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue#A-1 (RDA 1-18-94) 94-5 (2-11-94) Quick, Shauna S 16,717 409 Utica Avenue#C-32 (RDA 1-18-94) 94-6 (2-11-94) Dieckmeyer, Barbara $ 23,000 409 Utica Avenue#B-21 (RDA 2-22-94) 94-8 (2-11-94) Otto, T./Shorb R. $ 23,000 409 Utica Avenue#A-7 (RDA 1-18-94) 94-10 (2-11-94) Hoang,Tam $ 23,000 409 Utica Avenue#D-37 (RDA 2-22-94) 94-11 (5-18-94) Bastou, Valerie $ 25,000 409 Utica Avenue#D-43 (RDA 5-18-94 94-12 (5-18-94) Quick La Reine,Teresa S 25,000 409.Utica Avenue#A-9 (RDA 5-18-94) 94-13 (6-23-94) Melvin, Patrick $ 35,000 409 Utica Avenue#D-39 (RDA 6-20-94) 94-14 (7-27-94) Rivera, Hector&Iciar $ 25,000 409 Utica Avenue#A5 (RDA 7-18-94) 94-17 (10-4-94) Griffen, Olga Christina $ 25,000 409 Utica Avenue#C-23 (RDA 9-19-94) $ 243,717 G./joycellntermemo Rcconvey.doc r - 0 CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE: May 23, 2000 TO: Gus Duran, Housing/Redevelopment Manager FROM: Joyce DeKreek,Housing/Redevelopment Speciali SUBJECT: Research on Loan Forgiveness, 1st Time Home-Buyers Program 2nd$100,000 I have reviewed our records regarding funding of 1"Time Home-Buyers Program to determine the names and amount of assistance which benefited the applicants from the 2nd$100,000 in CDBG funds approved by the City Council at their December 20, 1993, meeting. At that meeting eight applicants(Hoang,Heildesch, Quick,Lawson, Steenveld,Otto, Dieckmeyer and Chavez)were approved to participate in the 1st Time Home-Buyers Program,totaling$59,100. However,two(2)applicants(Heildesch, Quick(Shauna) withdrew(or participated in another program),thereby lowering the total amount of assistance to $53,150. I have no record on Steenveld or Chavez(either on microfilm or files) and after checking with City Clerk's office,I believe these loans may not have been funded. If that's true,the total amount of assistance is lowered to $31,900. Since that meeting Bastou($5,000), Griffen($5,300),Melvin($10,000), Quick(Theresa) ($5,000) and Rivera H. ($5,000),were approved for CDBG 1st Time Buyer Assistance in conjunction with the Redevelopment 1st Time Buyer Assistance. Quick T. signed loan docs but withdrew prior to recording the docs. The CDBG amount of assistance is $25,300. Two applicants have paid back their loans:Hoang,CDBG loan paid on 12/21/1999 in the amount of$8,229.72 and Melvin, CDBG loan paid on 10-21-1997 in the amount of $11,655.36.. G./joycOntenwnw Reconvey.doc . h These loans are accrued at a 5% simple interest rate, due and payable upon sale, transfer, etc. Cc: Paul D'Alessandro, Deputy City Attorney Joyce de Kreek, Economic Development Steve Holz,Development Specialist G:roycdlntff=mo Rcconvey.aoe ITY OF HUNTINGTON BEARA cj-�A)I_ r� MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001 Council/Agency Meeting Held: —1 Deferred/Continued to: *pproved ❑ Conditionally Approved ❑ Denied City Cl&ks"S ignature Council Meeting Date: April 15, 1996 Department ID Number: 96-001 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCILIREDEVELOPNIENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL ??Ps -7`fa SUBMITTED BY: CONNIE BROCKWAY, CITY CLERKICLERK Gi ;R�5 7*_ 7 j DAVID BIGGS, ECONOMIC DEVELOPMENT DIRECTOR/REDEVELOPMENT DIRECTOR PREPARED BY: CONNIE BROCKWAY, CITY CLERKICLERK LJ SUBJECT: RESOLUTIONS ADOPTING THE POLICIES AND PROCEDURES MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM AND ACCEPTANCE OF LOAN AGREEMENTS FOR OFFICIAL FILING Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Envispn ental Status,Attachments) Statement of Issue: The City Council/Redevelopment Agency is requested to accept and authorize the City Clerk/Clerk to officially file on behalf of the City, 18 Down Payment Assistance Loan Program Agreements which pursuant to previous direction of the City Council, have been repaired to protect the interests of the city. The City Council/Redevelopment Agency is also requested to approve the Policies and Procedures Manual for the City of Huntington Beach/Redevelopment Agency Down Payment Assistance Loan Program for staff use in future assistance programs. Fundinq Source: None required. Recommended Action: 1. Authorize the City Clerk/Clerk to file on behalf of the City Council/Redevelopment Agency the 18 Down Payment Assistance Loan Program Agreements, as repaired to protect the city's interests pursuant to the previous direction of the City Council. C- ) e ) CK96001M.DOC -2- 04101/96 6:04 PM r } REQUEST FOR AY COUNCILIREDEVELOPMEtT AGENCY ACTION MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001 AND 2. Adopt Council Resolution No. 96-29 and Agency Resolution No. 273 adopting the Down Payment Assistance Loan Program Policies and Procedures Manual prepared by Kristine Price, Auditor, and direct that any substantial revisions to the manual be approved by the City Council/Redevelopment Agency. Alternative Actions : Council/Agency may approve the manual with any revisions deemed necessary by Council. Analysis: At the request of the City Clerk's Office and pursuant to City Council/Redevelopment Agency direction on March 20, 1995, repair work has been completed on 18 Down Payment Assistance Loan Program Agreements consisting of 27 notes with an aggregate outstanding balance of-$400,826. Kristine Price, outside auditor, has reviewed the repair work and has provided the city with a Letter of Satisfaction stating the city has taken the necessary steps to protect its interests through the appropriate correction of document errors and the creation of a Policies and Procedures Manual. The City Attorney's Office has confirmed by letter that the loan agreement files have been sufficiently repaired to protect the city. During the audit and following the audit, Kristine Price, Auditor held productive meetings with staff prior to preparing a Policies and Procedure Manual that meets our city's needs. With revisions from time to time, this manual will serve our city well. [It should be noted that the manual provides that any substantial revision to this manual shall be approved by the City Council/Redevelopment Agency.] The audit agreement that the City Council approved between the City and Kristine Price included the auditor conducting a training session with city staff. This session was not held due to Economic Development Department personnel turnover. The auditor deducted this from the agreement's final billing cost. However, the training session is available at such time as the city may require. Attachments: City Clerk's Page Number 1. Two communications from Kristine D. Price, Auditor, dated 9/10/95 & 12/26/95 2. Communication from the City Attorney dated 11/30/95 i 3. City Council Resolution No. 96-29 "A Resolution Of The City Council Of The City Or Huntington Beach Adopting The Policies And Procedure Manual For Down Payment Assistance Loan Program." )Q 4. Redevelopment Agency Resolution No. 273 "A Resolution Of The Redevelopment Agency Of The City Of Huntington Beach Adopting The Policies And Procedures Manual For Down Payment Assistance Loan Program." t7. 5. Policies and Procedures Manual CK96001 M.DOC -3- 04/05/96 1:19 PM r C, RESOLUTION NO. 95_29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING THE POLICIES AND PROCEDURE MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM WHEREAS, the City Council of the City of Huntington Beach desires the preparation of uniform policies and procedures for administrating of the City's Down Payment Assistance Loan Program; and The City contracted the professional services of Kristine D. Price for the purpose of auditing the loan program and creating a manual for staff to utilize when processing loan documentation; and Said manual containing uniform standards, procedures and policies for implementation of the loan program has been prepared; NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance Loan Program dated September 1, 1995, for use by City staff in implementing the program. BE IT FURTHER RESOLVED that any material revision to the manual be approved by the City Council. PASSED AND ADOPTED by the City Council of the City of-Huntington Beach at an adjourned regular meeting thereof held on the 22nc 1day of April , 1996. ATTEST _ Mayor City Clerk APPROVED AS TO FORM: -P-�' �Lz--& Administr -Z- AND APPR forCity AttorneyINITI TED AND APPROVED: ator Director of Economic Development CITY CLERK /AGEN7 CLERK 7/k/downpay/3119/96 1 Res. No. 96-29 STATE OF CALIFORNIA } COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH } I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 22nd of February, 1996 by the following vote: AYES: Councilmembers: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo NOES: Councilmembers: Drone ABSENT: Councilmembers: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G/resoluti/resbkpg r RESOLUTION NO. 273 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH ADOPTING THE POLICIES AND PROCEDURE MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM WHEREAS, the Redevelopment Agency of the City of Huntington Beach desires the preparation of uniform policies and procedures for administrating of the Agency's Down Payment Assistance Loan Program; and The City contracted the professional services of Kristine D. Price for the purpose of auditing the loan program and creating a manual for staff to utilize when processing loan documentation; and Said manual containing uniform standards, procedures and policies for implementation of the loan program has been prepared; NOW, THEREFORE, IT IS HEREBY RESOLVED that the Redevelopment Agency of the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance Loan Program dated September 1, 1995, for use by Agency staff in implementing the program. BE IT FURTHER RESOLVED that any material revision to the manual be approved by the Redevelopment Agency. PASSEQ AND AQpPTED by the Redevelopment Agency of the City of Huntington Beach at'-9egu ar rr eeeRng thereof Meld on the 22nd. day of n.prj i 1995. ` ATTESTL Chairman Agency Clerk APPROVED AS TO FORM: r RE AND APPROVED: fd/Agency Counsel i A INIT! ED AND APPROVED: Executive +rector /o C. Director of Econom c Development CITY CLERK /AGENCY XLERK 71k/d own pay13119/96 2 3- Res. No. 273 STATE OF CALIFORNIA ) COUNTY OF ORANGE. ) CITY OF HUNTI NGTON BEACH ) I, CONNI E BROCKWAY, Clerk of the Redevelopment Agency of the City ofHuntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at an adjourned regular meeting of said Redevelopment Agency held on the 22nd day of April, 1996 and that it was so adopted by the following vote: AYES: Members: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo NOES: Members: None ABSENT: Members: None Clerk of the Redevelopment Agency of the City of Huntington Beach, Ca. G/reso1ud/resbkpg2 (Brisas 79%) LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 1st day of SEPTEVOER , 19 by and between ("Participant") and THE CITY OF HUNTINGTON BEACH, a municipal corporation C"City"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as ghat Lkj%cc, S�. R S , Huntington Beach, California, and more particularly described in Exhibit "A" attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 79% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to City that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. City desires to utilize Community Development Block Grant funds in a manner consistent with federal guidelines to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach. E. The City wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1 7lmemo1,Loankk%83093/4.44 PM 1 . City Loan City shall loan to Participant (the "Loan") the amount of Dollars ($_5. ppp ), subject to the conditions and restrictions set forth herein, in the Promissory Note, the Disclosure Statement for the Program, the Deed of Trust and all applicable State, local and federal law. The Loan shall be paid to the seller of the Property (the "Seller") by the City through deposit of the Loan proceeds into escrow with 'C;Q,w,pp ESC�+Coe) (the "Escrow Agent") (Escrow No. The City shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan } points and fees, and/or document fees. At such time, Participant shall execute and deliver to the City a promissory note in favor of the City as holder, in the amount of the Loan, with interest accruing at five percent (5%) per year, substantially in the form of the "Promissory Note" attached hereto as Exhibit "B" and incorporated herein. Participant shall also execute and deliver to the City a deed of trust encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), substantially in the form of Exhibit "C" attached hereto and incorporated herein. 2. Maintenance of Property. Participant shall maintain the improvements on the Property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws, including conditions of approval which may apply to the Property pursuant to an entitlement issued by the City. 3. Acceleration/Due on Sale. a) Except as herein provided, the Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any amortization period longer than the loan secured by the First Mortgage, or (iii) Participant is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing 2 7%memolLoankk%8309314:17 PM f f'17„ r+r••, Agreement or Covenant (Attachment "D" to this Agreement), as defined herein, recorded on the property, or (iv) Participant violates any condition of the deed of trust or promissory note, or (v) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). b) Exception to repayment provision. Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one (1) herein, and any pro rata share applicable to any portion of a remaining year. 4. Notice to City. Participant agrees to notify the City not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the First Deed of Trust (the "First Mortgage") or any lien to which the lien of this Deed of Trust is subordinate. 5. Occupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information. Participant has submitted an eligibility verification form to the City prior to execution of this Agreement. Participant represents and warrants to the City that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the City is relying upon Participant's representations that Participant's income does not exceed 79% of the area median income and would not have entered this Agreement if Participant's income exceeded 79% of the area median income. 7. First Time Homebuyer. Participant represents and warrants to the' City that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any time during all or any part of the three (3) years immediately prior to the funding of the City Loan. 8. Loan Servicing. The City may contract with a private lender to originate and service the City Loan. 3 74memo%L0ankkS8309314:17 PM CITY �l Car 9. Participant Financing. Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the City (the "Lender"). In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 10. Covenants. Recorded in the Official Records of Orange County, California, is a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or covenants which is attached as Exhibit "D" hereto and incorporated herein. Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are - definedin the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth in the Affordable Housing Agreement. 11 . Non-Waiver. Failure to exercise any right the City may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 12. Indemnification. The Participant shall defend, indemnify and hold harmless the City of Huntington Beach and its respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property of this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the City to make such payments, by virtue of the Loan. 13. Insurance. Participant shall maintain, during the term of the City Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the City as loss payee and shall contain a statement of obligation on behalf of the carrier to notify the City of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to City within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to 4 71memolLoankk%8309314:17 PM City a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to City as follows: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Department of Economic Development Any certificate of insurance must be in a form approved by the City Attorney. 14. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 15. Documents. Participant is aware that the City has prepared certain documents to implement the Program and secure repayment of the Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Loan: (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust; and (d) The Affordable Housing Agreement (Exhibit "D") (e) Notice of Right of Recission 5 71memolLoankkX63093/4:17 PM &V �i.- Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 16. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the City shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. 17. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 18. Amendment of Agreement. No modification, recission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and City. 19. City May Assign. City may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 20. Participant Assignment Assumption Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the City, which consent may be given or withheld in the City's sole discretion. No assumption of the Loan shall be permitted at any time. This section shall not prohibit the City's right to assign all or any portion of its rights to the loan proceeds hereunder. 21 . Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous agreements between the City and the Participant concerning all or any part of the subject matter of this Agreement. 22. Relationship of Participant and City. The relationship of Participant and City pursuant to this Agreement is that of debtor and creditor and 6 7lmemo%Loankk18309314:17 PM CITY shall not be, or be construed to be a joint venture, equity venture, partnership, or other relationship. 23. Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: To Participant: OLdy 'Qwevr- 405 Uh-cu 5 To City: City of Huntington Beach Attention: Department of Economic Development 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 24. Subordination Clause In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclsoure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 7 7lmemo%LoankkN83093/4A7 PM rlTv �. .. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" Date: 9/1/1994 By: � 1�/YC✓ Print Name: HECTOR C. RIVERA Title: Date: 9/1/1994 By: Print Name: ITZI CUES A— ICIO Title: CITY OF HUNTINGTON BEACH, a municipal corporation Date: g/Vq y B 7� Print Name: MO Its: MAYOR APPROVED AS TO FORM: ATTEST: By 0 By.� !� JGAJ21-L H TTON, City Attorney TrintNa'e: Its: CITY CLERIC ii, 8 7lmemolLoankM83093l4:17 PM CALIFORNIA ALL-PURPOSE ANLOWLEDGMENT No.5907 State of County ofc � On zjA z ai, /0, /9 911 before me, g DATe NAME.TITLE OZ&FICER-E.G..-JANE DOE.NOTARY LIC- personally appeared 410" �,.c,�l �,r-� NAMES)OF SIGNER(S) C� personally known to me - to be the personW whose named +sure subscribed to the within instrument and ac- knowledged to me that he4he;they executed MAYNCE L JOHNSON the same in ef/their authorized COMM.#99105 .�• Notcly Public_Callfomla capacity i e s and that by 4ir6 e their ORANGE COUNTY si natures on the instrument the erson`s , ' My Comm.E>�Irea MAY 11.1997 g � p `� or the entity upon behalf of which the personLs) acted, executed the instrument. WITNESS my hand and official seal. SIGNATt OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE O TYPE OF DOCUMENT TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT NUMBER OF PAGES ❑ TRUSTEE(S) ❑�UARDIAN/CONSERVATO OTHER: g1lo A?-el DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S)OR E (IES) GNER(S)OTH HAN NAM�IQD ROVE --- ---------------- 01993 NATIONAL NOTARY ASSOCIATION-8236 Remmet Ave.,P.O.Box 7184•Canoga Park.CA 91309-7184 EXHIBIT A TO LOAN AGREEMENT 409 UTICA STREET, A-5 (RIVERA) • THE FC W OF POLICY OF =,2 INSUk Z= OC'I!IIEMPL=-BY THIS REPORT IS ALA RESIDENTIAL TITLE I21SURANCE POLICY (6-1-87) . AUTA LCMPOLICY WrrA ALTA ENDORSUGNr - Rt PN 1 CI.3llERAC2 (4-6-90) TtM ESMM ,CR n?ZMW IN 7HE LAND 1-=n i M DESaZn=' C R REFERFM ZO COVERED SY 'THIS REPOT IS : A CL'B+IDOM4nN AS DEF= IN SECTICN 783 OF TKE CIVIL ODDE IN TTTLS TD SAM ESWER OR INTER W AT TIRE DATE HEREOF IS VF5'I'ID. IN: ARE II,- A CALIFCR41A LIl= PAR:INERSMP. THE LAND REFERRED TO IN THIS REPORT IS SMATED IN THE STATE OF CALTFCRNTA, COURN OF CRA,M AND IS tES AS FC L C W: PARCEL 1: [INTT NO. 5, 02 SIM-WO OF COMM AIRSPACE AND S'L RTFACE MMENTS, AS SST AMID DESK IN THE CCMCMIIVIUM PLAN ("PLAN;') FOR BRISAS DEL MAR L CATID ON WT 1 OF TRACT 14757, AS SiOM CST A S=IVISICN MAP RFDORDED CN SEPIE43M L, 1993, IN BOOK 701', PAGES 42 TKRQ M 43, DXUZIVE OF MISM-1 ANEOM MAPS, IN 'IHE OFFICE OF THE amm CTMTI'Y RECORDER ("OFFICIAL RYAS") , WHICH PLAN WAS 'RED CN S F 15, 1993, AS WTRU�M NO. -93-.0621742, OF OFFICIAL FaccRns, CALIFURNIA. PARCEL 2: AN UMIVMED aM FCRI'Y-FMRM (L/44) FEE SIMPLE IlCERSSP AS A T 7M IN Oa4M' IN AND TO MOO ILe B MC +K C N 'THE PLAN AM DEF= 11,11 111E Dw-CLM ,TICN REFERRED TO BELC W AS THE "(1:lwNY_'$Q AREA". Z.= =F"'"RCI+4 ALL OIL, GAS, NCZ,A;S AND 071M HYDRO0�,RB - S{38STWM8 LYLNG BELCW A DEPM OF 500 FEET WI'IHCW ANY RIGHT rM aTM UPtON THE SURFACE OR ':?M S(J URF`AL'E OF SAID LAND AWVE A D=H OF 500 FFE'', AS PROVIDED IN INST'RUI DM OF RECORD. PARCEL 3: NONEX T.]SIVE ANTS FOR ACMSS, INMRESS, E3ZESS, USE, E930YMFNT, ORAZMAM, wammv m, SJPPORT, mkwimoNCE, REPAIRS AM FC R OTHER SMPOSES, ALL AS MAY BE SHOWN IN 'IE PLAN, AMID AS ARE DE W THE DECI,ARATICN. PARCEL 4: DIVE EASEMWIS APB M PARCELS NO, 1 AND NO. 2 DESCRIBED ABOVE FOR- USE FOR PARKTNt3 PURPOSES DESCRIBED AS EXC UISIVE. USE AREAS TDT 7VE DECLARATION, OVER PORTICO OF LOT 1 OF TRACT--14757 SHC:FW AND ASS!= LN THE PLAN. . PARCEL _5; AN MCCl.I1STVE F,ASII= APPIIl=MW TO PARCELS N3. 1 AM N0, 2 DFSCRIBED ABOVE,- FOR USE FCR PATIO, W-CXY, AND FIRE ESMM -STAI.RCASE RWOSES DESO?M AS EXCLUSIVE USE. AREAS IN 'F�!E DECLARATION, AS APPLICABLE,. OVER PORTIONS OF LOT L OF TRACT 14757. AS S40Wr1, AS.SZC-M AMID DESCP= TN THE PLAN. (Brisas 79%) LOAN AGREEMENT tic Y THIS LOAN AGREEMENT (the "Agreement") is made this 1st day of qppm __ , 1994 by and between ("Participant") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body, corporate and politic ("Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as L- p(I (A�,cc,_ S�_AS Huntington Beach, California, and more particularly described in Exhibit "A" attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 79% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. Agency desires to utilize tax increment money to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach, all of which is consistent with the goals of the Affordable Housing Program and the Huntington Beach Redevelopment Plans. . 1 71abrisas108103194 CITY CLERK T , 1 E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1 . Agency Loan. Agency shall loan to Participant (the "Loan") the amount of 4,,,&,rG}v, ve— i!nQLL a_ r,,_A Dollars ($�a 5,Mb ), subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note, the Disclosure Statement for the Program, the Deed of Trust and all applicable state, local and federal laws. The Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Loan proceeds into escrow with Tiew��0 Gsr_You) (the "Escrow Agent") (Escrow No. `] $--L ). The Agency shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a promissory note in favor of the Agency as holder, in the amount of the Loan, with interest at five percent (5%) per year. The Loan, together with accrued interest and the equity share amount, shall be due in the event that Participant fails to comply with the terms of this Agreement, the Deed of Trust and Rider thereto, any Covenants, Conditions & Restrictions for Affordable Housing or Affordable Housing Agreement which is recorded on the Property, or any other law, requirement or condition of the Affordable Housing Program or governmental entity or sells the Property to a non-qualified Buyer. Otherwise, no payment of principal or interest shall be required during the term of the Loan. Participant shall execute and deliver a Promissory Note substantially in the form of the Promissory Note attached hereto as Exhibit "B" and incorporated herein by this reference. Participant shall also execute and deliver to the Agency a deed of trust encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), in the form of Exhibit "C" attached hereto and incorporated herein. 2 7labrisas108103194 CT C_7u,K 2. Maintenance of Property_. Participant shall maintain the improvements on the Property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Acceleration/Due on Sale. The Loan, all interest accrued thereon and the equity share amount as defined herein below, shall be due and payable upon (i) sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, except sale to a purchaser approved by Agency, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or, (iii) Participant is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant (Attachment "D" to this Agreement) recorded on the property, or (iv) Participant violates any condition of the deed of trust or promissory note, or (v) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). At the request of Participant, the Agency may, in its sole discretion, extend the term of the Loan. 4. New Loan to QualifiedBmter. Notwithstanding the provisions herein above, if the Property is sold by the Participant to a Buyer defined as a low or moderate income household by Section 50093 of the California Health and Safety Code (or any other provision of law which may be enacted in the future, replacing Section 50093 or the law which defines "low or moderate" income for the purposes of affordable housing), and said 3 7/abreses108103l94 f CITY CLUK t . Buyer is approved by Agency, ("Eligible Person or Family") and the Sales Price does not exceed an "affordable housing cost," as defined by Section . 50052.5 of the California Health and Safety Code (or any other provision of law replacing this section which may be enacted in the future), and the Buyer assumes the Participant's loan, then no Equity Share Amount is due to the Agency upon such sale and interest is due under the conditions set forth below. In order to verify the Buyer's status as an Eligible Person or Family, Participant shall submit to the Agency, together with the notice of proposed sale pursuant to the Loan Agreement, the identity of the proposed Buyer and adequate information evidencing the income of the proposed Buyer. Said income information shall include original or true copies of pay stubs, income tax records or other financial documents in order that the Agency may determine and verify the household income of the proposed Buyer to determine Eligible Person or Family status and whether the Property is available to such Buyer at an affordable Dousing cost pursuant to the standards set forth in the Agency's Affordable Housing Program. If the Agency is unable to verify the Buyer's income as provided herein, then the Buyer's income shall be deemed to exceed the maximum allowable income limit for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. In the event that sale or transfer is made to an Eligible Person or Family, interest which has accrued upon close of escrow shall be due and payable, unless the Property has appreciated in value by an amount which would be less than the value of the Property had it appreciated at a rate of five per cent (5%) per year (plus the prorata amount for any portion of a year) over the original price paid by the Participant. If the price of the Property upon sale to an Eligible Buyer is less than the price paid by the Participant at the time of original purchase, plus five percent (5%) of that amount for each full year of ownership plus a prorata share of any portion of a year remaining, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 5. Notice to Agency. Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or 4 7la4risas108103I84 CITY 0 FP (ii) any refinancing of the lien secured by the First Deed of Trust (the "First Mortgage) or any lien or note to which the lien secured by the First Deed of Trust is subordinate 6. Occupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 7. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 79% of the area median income and would not have entered into this Agreement if Participant's income had exceeded 79% of the Orange County median income. 8. First Time Homebuyer. Participant represents and warrants to the Agency that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any time during all or any part of the three (3) years immediately prior to the funding of the Agency Loan. 9. Loan Servicing. The Agency may contract with a private lender to originate and service the Agency Loan. 10. Participant Financing. Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Deed of Trust shall only be subordinate to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 11 . Covenants. Recorded in the Official Records of Orange County, California, is a declaration of conditions, covenants and restrictions 5 7labrisasl08l03194 r?TV :- i for property, which is known as an Affordable Housing Agreement or (covenants) which is attached as Exhibit "D" hereto and incorporated herein. Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate.income available at an affordable housing cost, as those terms are defined in the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth in the Affordable Housing Agreement. 12. Equity Share. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrent with the principal and accrued interest, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary fifty percent (50%) of the Agency Deed of Trust: 2. After fifth anniversary but forty-eight percent prior to sixth anniversary: (48%) 3. After sixth anniversary but forty-six percent (46%) prior to seventh anniversary: 4. After seventh anniversary but forty-four percent (44%) prior to eighth anniversary: 5. After eighth anniversary but forty-two percent (42%) prior to ninth anniversary: 6. After ninth anniversary but forty percent (40%) prior to tenth anniversary: 6 71abrisas1O87O3194 CITY n roi 7. After tenth anniversary but thirty-eight percent (38%) prior to eleventh anniversary: 8. After eleventh anniversary but thirty-six percent (36%) prior to twelfth anniversary: 9. After twelfth anniversary but thirty-four percent (34%) prior to thirteenth anniversary: _ 10. After thirteenth anniversary but thirty-two percent (32%) prior to fourteenth anniversary: 11 . After fourteenth anniversary but thirty percent (30%) prior to fifteenth anniversary: 12. After fifteenth anniversary but twenty-eight percent prior to sixteenth anniversary: (28%) 13. After sixteenth anniversary but twenty-six percent prior to seventeenth anniversary: (26%) 14. After seventeenth anniversary but twenty-four percent prior to eighteenth anniversary: (24%) 15. After eighteenth anniversary but twenty-two percent prior to nineteenth anniversary: (22%) 16. After nineteenth anniversary buttwenty percent (20%) prior to twentieth anniversary: 17. After twentieth anniversary but eighteen percent (18%) prior to twenty-first anniversary: 7 7/abrisas1OB1OW94 CITY cr r 18. After twenty-first anniversary but sixteen percent (16%) prior to twenty-second anniversary: 19. After twenty-second anniversary but fourteen percent (14%) prior to twenty-third anniversary: 20. After twenty-third anniversary but twelve percent (12%) prior to twenty-fourth anniversary: 21 . After twenty-fourth anniversary but ten percent (10%) prior to twenty-fifth anniversary: 22. After twenty-fifth anniversary but eight percent (8%) prior to twenty-sixth anniversary: 23. After twenty-sixth anniversary but six percent (6%) prior to twenty-seventh anniversary: 24. After twenty-seventh anniversary but four percent (4%) prior to twenty-eighth anniversary: 25. After twenty-eighth anniversary but two percent (2%) prior to twenty-ninth anniversary: 26. After twenty-ninth anniversary but one percent 0 %) prior to thirtieth anniversary: 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the original purchase price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commission, loan fees or any other closing or transaction costs. 8 71abrisas10 810 319 4 The "Sales Price" is the price to be paid by the buyer of the Property (the "Buyer") to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. In the event of sale of the Property and at the election of the Agency, the Agency may appoint a certified, independent appraiser to conduct any appraisal of the Property, at Participant's expense to assist the Agency in determining if the Sales Price is at or near the fair market value of the Property at such time. If the Sales Price is determined by the appraisal to be three percent (3%) or more below the fair market value of the Property as estimated in said appraisal, then the "Sales Price" for purposes of determining the Equity Share Amount shall be the fair market value of the Property established in said appraisal. PARTICIPANT ACKNOWLEDGES AND AGREES THAT UPON THE OCCURRENCE OF ANY OF THE EVENTS DESCRIBED IN PARAGRAPH 3 ABOVE, PRIOR TO THE 30TH ANNIVERSARY, PARTICIPANT SHALL PAY TO AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION. EXCEPT AS PROVIDED HEREIN, THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY THE NOTE AMOUNT AND THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS TO CONTINUOUSLY OWN AND OCCUPY THE PROPERTY FOR THIRTY (30) YEARS, PARTICIPANT FAILS TO COMPLY WITH THE PROVISIONS OF THIS AGREEMENT, OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT QUALIFIED BY THE AGENCY. -dotl PARTICIPANT AGENCY The value of all capital improvements to the Property made while Participant owned and occupied the Property shall be deducted from the Sales Price when calculating the Equity Share Amount, if Participant complies with the following: 9 7/abrisas/08103/94 The costs incurred by the Participant for capital improvements shall be deducted from the Sales Price only if Participant submits the following to the Agency: (i) an itemized list of the improvements, (ii) reliable proof of completion of the improvements (as evidenced e.g., by final building permits or certificate of completion), and (iii) reliable evidence of the cost of the improvements and that Participant paid those costs (as evidenced e.g., by an itemized invoice or receipt). Notwithstanding the foregoing, Participant's obligation to pay the Equity Share Amount is subject to a superior right of Participant, upon termination of the Agency Loan, to receive repayment of money paid by the Participant without Agency assistance for purchase of the Property (including down payment, installment payments of mortgage principal pursuant to the First Lien, escrow fees, transfer taxes, recording fees, brokerage commissions, and similar costs actually paid by the Participant) and money paid by the Participant for capital improvements to the Property. 13. Non-Waiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 14. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and its respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There small be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency to make such payments, by virtue of the Loan. 15. Insurance. Participant shall maintain, during the term of the Agency Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the Agency as loss payee and shall contain a statement of obligation on behalf of the carrier to notify the Agency of 10 7/a brisas1081O3194 any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to Agency within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to Agency a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to Agency as follows: REDEVELOPMENT AGENCY OF THE City of Huntington Beach Attention: Executive Director 2000 Main Street Huntington Beach, CA 92648 Any certificate of insurance must be in a form approved by the City Attorney. 16. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 11 71abrisasl08103194 17. Documents. Participant is aware that the Agency has prepared certain documents to implement the Affordable Housing Program and secure repayment of the Loan. Participant has reviewed and agrees to the terms and conditions contained in the following documents prior to receiving the Loan: (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust; and (d) The Affordable Housing Agreement (Exhibit "D"). (e) Notice of Right of Recission Participant agrees and acknowledges that the executed Deed of Trust, Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. Participant further agrees to all terms and conditions of the Disclosure Statement which is hereby incorporated as if fully set forth herein. 18. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. 19. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 20. Amendment of Agreement. No modification, recission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 12 7labrisasl0$103194 21 . Agency May Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 22. Assumption Permitted/Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. Assumption of the Loan shall be permitted, if consent is given by Agency. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 23. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. 24. Relationship of Participant and Agency. The relationship of Participant and Agency pursuant to this Agreement is that of debtor and creditor and shall not be, or be construed to be a joint venture, equity venture, partnership, or other relationship. 25. Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: To participant: iU&Cl- ova�euc C 10t a6 q$ To Agency: THE REDEVELOPMENT AGENCY OF 13 7/abrisas108103194 CITY C��' The City of Huntington Beach Attention: Executive Director 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 26. Subordination Clause. In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 14 7i8 b risa s108/03/94 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" Date: By: -ec—t �. PivpiyL_ Print Name: Title: Date: By: C� Print Name: Title: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a municipal corporation Date: O g 7 B Print Name:'j�otk mou Its: CHAIRPERSON APPROVED AS TO FORM: ATTEST: By: By: AIL HUTTON Print Name: wt- ity Attorney/Agency Counsel Its: CLERK elf A 15 7/abrisas/08/03/94 Y-rry CALIFORNIA ALL-PURPOSE ANOWLEDGMENT No.5907 State of County of On /O. 1�9 before me, , DATE NAME.TrTLE OF dKFICER-E.G..'JANE DOE,NOTARY PUBLIC' personally appeared A NAME(S)OF SIGNER(S) li -Tersonally known to me - to be the personW whose nameW +s4are subscribed to the within instrument and ac- knowledged to me that elthey executed IMAYBRICE 4 JONKRON the same in hisi their authorized �+/h.�_r.C comm.f99la% capacity ies , and that by h i�TTtheir '+1Ot�GECOU,�lO"y° signatureUs on the instrument the person(§), MVCcmm.Eg*46 MAY 11.19W or the entity upon behalf of which the person( acted, executed the instrument. WITNESS my hand and official seal. SIGNATCRE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE M TYPE OF DOCUMENT TITLES) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL Ij ❑ ATTORNEY-IN-FACT NUMBER OF PAGES ❑ TRUSTEE(S) ❑ GUARDIANICONSERV TO OTHER: a 9 —44 C&0;.1 DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S OR EN TY(1ES) GNER(S)OT THAN NAME15 ABOVE -- ------ - - - - - - - - - 01993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 ti EXHIBIT A TO LOAN AGREEMENT 409 UTICA STREET, A-S (RIVERA) .CCRM Cr aP-OLICY Or 'T`.-72 T_WJRAN pLr�. =.j.3Y r-US R "CCn IS ALTA RES 312" LAL 12:ZF, j'G15iMMM POLICY (6-1-8 7) . --- ALTA I C.,W IMLIC'Y W=rI ALTA 700 R.S�'�TI' - rdRM 1 CM0ZA (4-6-90) THE ESTATE OR STIMMS T nt 7_14E LAND uME % DESCRMM Oct ARE„3 M COV= BY MIS REP= IS : A CM=CMnTl[W AS DEFIPIEi] ,TN S=CN 783 Cr T.Lm- C'n1 L CJ---E ?N FEE. TITLE M SAID FSTA'T ' CR IN7ZR= AT T%E rAZE M r^ IS Vt'=. -IN: DELAYU.M tI,- A GALImr Rm Lnvf mnmom.IP. ZIP IAIGID RED m IN Twras REPCR_ IS SIM7_1.=ID IN ME 3=-- OF aLIFaum, COUNTY OF GRA.NCE AND IS MgaZIM) AS FCT3O1S: PARCEL 1: UNYT NO. S, CCWISIIM OF CERTAIN AIRSPACE AND SMF. C F EVERM, AS ZCW AMID DESaLMM IN =1 PLAN ("PLAN;') FC,!R =SAS DM MAR LOC7L= CN Ur 1 OF 'IRA=;, 14757, AS CST A SIIBDIVISIC$J 1W FSOMMM M SEFIrEr 1T ER L, 1993, IN BOOK 701', PAMS 42 ThUrVOCai 43, INC :SIVE OF MSMIANROM IMPS, LN 'IRE OFFICE OF UM CRAME CD1L,'NTY RECS3RDx.,.n' ("OF':'3CIAL RECMDS") , %Mil PTIM WAS REMRDFTJ CN SM7EMM 15, 1993, AS MZMMvW_W NO. -93-.0621742, OF OFFICIAL lGAd=, CALIFCRNIA. PARCEL 2: AN I.=rVMED CNE rOR'TY-FCM'IH (L/44) FEE SIMPl_Y_ MEP= AS A T=1�'�,I�T IN Gam' IN AND TO MnMLE B SF.I;M CN TAM PLAN AM DEF= LN ":'�-*.c..' DE=ATIO Rv-'-%RR=- M BEiCW AS THL "CCN#rN AREA". EY T =1 =04 ALL OIL, GAS, Mom':tALS AAID C71 :�''_�RGCARRC . S'�SSS'LA�T S LYLTIG BZ-CW A DE. =! OF 500 =. WI-Lr= ANY RICE+ :O DTI"'Q UPCN S'r�T2F'AL... OR T SUILCLIR AC- CF SAID LAM AWVE A D=i OF 500 ram"1, AS PRGVIDFM _24 Dl9lMN0TrS OF REMRD. PAR= N==DIVE FA.S":Sl= MR AC Zla-CEISS, ASS, LLB', EL-M TI', DRADAG^, r1C12C. m-422f., SUPPORT, Mk-ugmWCE, REPAIRS ACID FC?t O'I�M PTJ-% SF.S, ALL AS MAY BE S-ZN IN PLAN, AND AS ARE DESC� I'R B TUN THE DF�RATICN. PARCEL 4: E'=I7.SWE EAM-011S APPf.'F`IMUNr TO P.ARCEZS NO. 1 AND NO. 2 D:rSCUF A= FAR USE FrCR PAIR= RR=rZ D-r=BED AS EX=IVE. USE AREM TUT 7-M DEMARATT'ION, MEER 1:0=CM OF LOT 1 Gr 'IRACI-14757 MOAN ALGID ASST_= 21 TM- FIE R . . PARS., .5: AN EXC"-i.IZWE ^rA82%Mn APP'MA VT TO PAR=- NO. I AM :30. 2 DE8C:RS M AECVE, FOR USE OR PATIO, BALCMY, PND FIR~ ESMPE - PtzRtk= Dom= AS ID{MILISIVE = AREAS TEN 7S, DMr RATICN, AS APPLTC kBLE, 4VE"R mC:KTiCt-S OF !Cr L OF 'TACT 14757 AS _590W, ASS'PL= RD DF5S—=] 21 'IfiE PLAN. AGENCY THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LOAN DISCLOSURE STATEMENT INVe HeG-�a,( -►- r_a ("Applicant') understand and agree that the provision Of financial assistance from The Redevelopment Agency of the City of Huntington Beach ("Agency") is conditioned upon a number of factors, including, but not limited to: IIWe must qualify for a home loan from an institutional lender acceptable to the Agency. • I/We must pay at least 3% of the home purchase price from our own funds. • I/We must qualify for assistance under the guidelines of the Agency's Program. IMIe further understand and agree that: • IIWe will be responsible for repaying the loan at the time Itwe sell, transfer, refinance, or no longer occupy mylour home, or breach any part of the Loan Agreement. • I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan to: Redevelopment Agency of the City of Huntington Beach 2000 Main Street, P.Q. Box 190 Huntington Beach, CA 92648 Attn-. Agency Clerk • The Agency will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest may be due and payable if I/we do not comply with the terms of the agreement to which this statement is attached or when the Loan is assumed. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of mylour house. 1 71d isc1s1071I 3194 IQW CLERK • The Agency shall not be held responsible for any costs associated with the institutional loan for the home I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The Agency cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The Agency shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/we desire to be considered for the Program, and I/we will inform myselflourseIves as to the availability and terms of other public or private loans. • The Agency shall not be charged with knowledge of the contents of the documents of the primary lender. • All loans must be approved by the Redevelopment Agency of the City of Huntington Beach; therefore, a minimum 60-day escrow is necessary. Z 7ldisdPs10V l 2f94 CITY CLERK • The Agency financial assistance llwe receive under this Program may be considered to be income for purposes of federal or state income taxes and the Agency shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of such financial assistance. Dated. 4�' Signature of applicant � N t Dated: S C Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: Agency Counsel O9 K 6c 3 74d-est1s%07!!2J94 GTY CUPK CITY CITY OF HUNTINGTON BEACH LOAN ASSISTANCE DISCLOSURE STATEMENT ("Applicant") understand and agree that the provision of financial assistance from The City of Huntington Beach ("City") is conditioned upon a number of factors, including, but not limited to: • I/We must qualify for a home loan from an institutional lender acceptable to the City. • I/We must pay at least__3 % of the home purchase price from our own funds. • I/We must qualify for assistance under the guidelines of the City's Program. I/We further understand and agree that: • I/We will be responsible for repaying the loan at the time I/we sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. • I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan to: City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Attn: City Clerk • The City will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable if I/we do not comply with the terms of the agreement to which this statement is attached. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of my/our house. 1 7\disc1s\07/13/94 r 0TY CLERK • The City shall not be held responsible for any costs associated with the institutional loan for the home Ilwe purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The City cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The City shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other _ public or private sources of loans, or the competitiveness of the terms of the Program. Ilwe assume all responsibility for determining whether Ilwe desire to be considered for the Program, and llwe will inform myself/ourselves as to the availability and terms of other public or private loans. • The City shall not be charged with knowledge of the contents of the documents of the primary lender. 2 7Wiscls107112194 CITY CLERK J • The City financial assistance I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and the City shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of such financial assistance. Dated: 9/1/1994 (2-_ Q/ � Signature of applicant Dated: 9/1/1994 a— Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: A�� City Attorney -- dr -SS� 3 7ldiscls%0711 2194 ,'iCI Y CLERK • . AGENCY PROMISSORY NOTE Property Address 40ck u�ic_c,,- Huntington Beach, California SEPT. 1 , 1994 1. Promise to Pay. t� C2 M r i- Tc C00.+( 2.i�}er�o� ("Borrower") promises to pay the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body, corporate and politic ("Holder," also referred to as "Agency"), at the office of the Agency in Huntington Beach, California, or at such other place as the Holder may designate in writing, the principal sum of �taa.-,�� --;�12. '�►'�/�oy.Saa-+ram cy _ _ Dollars ($e25�Q} (the "Note Amount"), together with interest. The balance of all unforgiven unpaid principal and accrued interest shall be due and payable upon sale of the Property or upon occurrence of the other events listed in the acceleration clause herein. 2. Interest Rate Interest shall be charged by the Agency on the portion of the Note Amount remaining unpaid from time to time, from the date of the disbursement of the Note Amount until the date upon which the Note Amount is repaid, at the simple rate of five percent (5%) per annum. In the event that Borrower transfers the Property to a Buyer qualified to participate in the Agency's Affordable Housing Loan Program and approved by the Agency ("Qualified Buyer"), and the Property has appreciated in value by an amount which would be equal to or greater than the sales price of the Property to the qualified Buyer plus five percent (5%) of the original price added to each year of ownership, plus any prorata share of a portion of a full year which might remain at the time this is calculated, then, all accrued interest which would then have been due and payable if the Borrower were in default will be paid on the date upon which escrow closes; however, no equity share amount shall be due. Interest at the rate of five percent (5%) per annum will begin to accrue as to the new Buyer on the remaining principal from the date upon which escrow closes and all interest thereafter accrued will be due and payable at the same time the Note becomes due and payable, unless the new qualified Buyer assumes the Loan. 3. Affordable Housing Agreement This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and Agency dated 9/1/1994• This Promissory Note is attachment "B" to the Loan Agreement. 4. Acceleration The whole of the Note Amount, any interest accrued thereon, the equity share amount, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (a) Unless sale is made to a qualified Buyer who assumes the Loan, Borrower sells, transfers or makes disposition of the Property in whole or in 1 711oandoclagencypromnote107112194 CITY CLERK 5 _ E i part, including, without limitation, the lease, exchange or rental of the Property or any interest therein, whether voluntary or involuntary; (b) Borrower refinances any lien or encumbrances to which the Agency Deed of Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; (c) Borrower fails to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in breach or default of any other obligation under the Agreement or violates the terms of the Affordable Housing Agreement (Affordable Housing Covenant); (d) The close of a probate estate following the death of Borrower (unless Borrower is more than one person and one or more of the other- people comprising Borrower survive); (e) Borrower defaults on this Promissory Note; M Borrower defaults on the Agency Deed of Trust. In the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or in any other instrument executed by Borrower or any guarantor in favor of the Agency, the Agency may at its election declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. 5. Application of Payments Any sums received hereunder may, at the options of Holder hereof, be applied in any order to the payment of costs, interest, or principal due hereunder. 6. Prepayment Privilege is reserved to make prepayments of principal on this Note without penalty or fee. 7. Non-Waiver Failure to exercise any right the Holder may have or be entitled to, in the event of any default hereunder, shall not constitute a waiver of such right or any other right in the event of subsequent default. 8. Borrower's Waivers The Borrower and all guarantors and endorsers hereof hereby severally waive certain requirements of the Agency. These are: a) to demand payment of amounts due (known as "presentation for payment"), b) to give notice that amounts due have not been paid (known as "notice of dishonor") and c) to obtain an official certification of nonpayment (known as "protest"). Borrower consents that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the debt evidenced by this Note, by agreement between the Holder and Borrower, and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, 2 711candoclagencypromnote107112/94 CITY 0 FIR, covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to'and bind, the undersigned and its successors and assigns, jointly and severally. 9. Collection Costs If any attorney is engaged by the Agency to enforce or construe any provision of this Note or the Deed of Trust, or if Agency incurs any other expense by virtue of collecting sums due to the Agency under this Note, as a consequence of any default or event of default hereunder, with or without the filing of any legal action or proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other costs incurred by the Agency, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 10. Security of Note This Note is secured by a Deed of Trust (The "Deed of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 11 . Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law. 12. Business Purpose The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 13. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 14. Payments.Deferred All interest and principal payments will be deferred so long as the Borrower is in compliance with the terms of this Note, the Affordable Housing Covenants or Agreements recorded on the Property, the Deed of Trust and the Loan Agreement. All interest shall be due at the time the Note becomes due or upon sale to a qualified Buyer, if the Property has appreciated in value by 5% or more per year over-the original purchase price. 3 7/ioandoc/agencypromoote/07/12/94 CITY. CURK r � IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. SIGNATO Y DATE: l B y �G "Borrower"r lViff DATE: By 2� WQ"Borrower" APPROVED AS TO FORM: Agency Counsel d 4 7/ioandoc/agencypromnote10 712 5/9 4 MY CLERK AG NCX S �1� a ORArlCE COAST TI C;L-,P E �' '`;•� SUBDIVISION DEPARTLAE�IT 09—GEP-19194 03 Z 9 PM RECORDING REQUESTED BY } RecordedZf Off irI a� '1?CUr+�S of Drama r,vi1ntY, Calitor a:2 AND WHEN RECORDED RETURN TO: }} a wrwn_r, Couity Recorde r r. The Redevelopment Agency of the } Tan' w.VV City of Huntington Beach } 2000 Main Street } Huntington Beach, California 92648 } �� •� r7 REdbWhGCity Clerk REQUESTED gy ORANGE COUNTY MALE SENCE t ISpace Above This Line For Recorder's Use.] This document is exempt from Y recording fees pursuant to - - Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS 94 THIS DEED OF TRUST is made this 1ST day of SEPT., 19�t, by and among R HECTOR C. RIVERA AND ITZIAR * ,whose address is aA Ia l�l4v�rQ *�'b �t3 , (the "Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the ,ar "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. *CUESTA-APARICIO WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. A. FOR THE PURPOSE OF SECURING: yy� t 1 . Payment of the sum of -�,�,er` �i+re`�vax+c� 8��cx.,rs with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 71DEE0REN'R071131941R 1 C11Y CLERK 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated SEP=IBER 1 , 199 4, and in that certain Affordable Housing Agreement currently recorded on the property, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good conditions and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; lb) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection 71DEEDRENT107112194IB 2 CITY CLERK with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form_ , content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such 710 EEO RENTk07/121941B 3 CITY CLEW, CITY PROMISSORY NOTE Property Address 4d 9 Lk icc-,. S+ R S Huntington Beach, California —. T 9/1 . 1994 1 . Promise to Pay. ("Borrower") promises to pay the CITY OF HUNTINGTON BEACH, a municipal corporation ("Holder," also referred to as "City"), at the office of the City in Huntington Beach, California, or at such other place as the Holder may designate in writing, the principal sum of Dollars ($,dpD ) (the "Note Amount"), together with interest. The balance of all unforgiven unpaid principal and accrued interest shall be due and payable on the 30th anniversary date of this Promissory Note. 2. Interest Rate Except as herein provided, interest shall be charged by the City on the portion of the Note Amount remaining unpaid from time to time, from the date of the disbursement of the Note Amount until the date upon which the Note Amount is repaid, at the simple rate of five percent (5%) per annum. 3. Affordable Housing Agreement This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and City dated 9/1/1994 This Promissory Note is attachment "B" to the Loan Agreement. 4. A. Acceleration Except as otherwise provided herein, the whole of the Note Amount, any interest accrued thereon, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (1) Borrower sells, transfers or makes disposition of the Property in whole or in part, including, without limitation, the lease, exchange or rental of the Property or any interest therein, whether voluntary or involuntary; (2) Borrower refinances any lien or encumbrances to which the City Deed of Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; (3) Borrower fails to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in breach or default of any other obligation under the Agreement or violates the terms of the Affordable Housing Agreement or Affordable Housing Covenant; 1 7lloandoc/citypromnote/07/1 2I94 GTY CURK (4) The close of a probate estate following the death of Borrower (unless Borrower is more than one person and one or more of the other people comprising Borrower survive); (5) Borrower defaults on this Promissory Note; (6) Borrower defaults on the Agency Deed of Trust. B. Exception to Payment Requirement Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus added thereto five percent (5%) of that amount for every full year of ownership, since the close of escrow described in paragraph one (1) herein, plus any pro rata share applicable to any portion of a remaining year. In the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or in any other instrument executed by Borrower or any guarantor in favor of the City, the City may at its election declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. 5. Application of Payments Any sums received hereunder may, at the options of Holder hereof, be applied in any order to the payment of costs, interest, or principal due hereunder. 6. Prepayment Privilege is reserved to make prepayments of principal on this Note without penalty or fee. 7. Non-Waiver Failure to exercise any right the Holder may have or be entitled to, in the event of any default hereunder, shall not constitute a waiver of such right or any other right in the event of subsequent default. 8. Borrower's Waivers The Borrower and all guarantors and endorsers hereof hereby severally waive certain requirements of the City. These are: a) to demand payment of amounts due (known as "presentation for payment"), b) to give notice that amounts due have not been paid (known as "notice of dishonor") and c) to obtain an official certification of nonpayment (known as "protest"). Borrower consents that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the debt evidenced by this Note, by agreement between the Holder and Borrower, and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to and bind, the undersigned and its successors and assigns, jointly and severally. 2 7/1oandoc/d1VpramnoteJ07/12/94 iLTY CLERK 9. Collection Costs If any attorney is engaged by the City to enforce or construe any provision of this Note or the Deed of Trust, or if City incurs any other expense by virtue of collecting sums due to the City under this Note, as a consequence of any default or event of default hereundere, with or without the filing of any legal action or proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other costs incurred by the City, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 10. Security of Note This Note is secured by a Deed of Trust (The "Deed of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 11. Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law. 12. Business Purpose The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 13. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 14. Payments Deferred All interest and principal payments will be deferred so long as the Borrower is in compliance with the terms of this Note, the Affordable Housing Covenants or Agreements recorded on the Property, the Deed of Trust and the Loan Agreement and uses the Property as his personal primary residence. 3 711oando cicityprom note107112/94 CITY CLERK IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. SIGNATORY y � DATE. / By 4O� UI�L "Borrower" � y. DATE: By -J i-21QF Cos i tav- "Borrower" APPROVED AS TO FORM: By:�} .� City Attorney clelor-if 4 711oa ndocicitypromnote10712 5194 iTY CLERK CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK DEED AUTHORIZATION This is to certify that the interest in real roperty conveyed by the Deed of Trust dated 9///9f from Hec-ForC_ iverca and Itziar Cuesta—Aparicio to the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a government agency, is hereby accepted by the undersigned officer or agent on behalf of Agency pursuant to authority conferred by Resolution No. 76 of the Agency adopted by its governing body on the 20th day of June, 1983 and the grantee consents to recordation thereof by its duly authorized officer. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Connie Brockway Clerk BY eputy erk (Telephona:714-536-6227) GOVERNMENT CODE 27361.7 CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO 'WHICH THIS STATEMENT IS ATTACHED READS AS FOLLO S: NAME OF THE NOTARY: , DATE COMMISSION EXPIRES: //-a", r COUNTY WHERE BOND IS FILED: COMMISSION NO.: 78 41 MANUFACTURER/VENDOR NO.: pit; PLACE OF EXECUTION: DATEA/q/ SIGNATURE: ORANGE COAST TLE COMPANY Form No. OCT-8b AMERI C, �►� Y� ,f %} STATE OF CALIFOR }ss. COUNTY OF On �� l , before me, �• V , ersonally appeared e � V cr �ZP� vt°St K I C 1 C7 , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WI NESS hand and official seal. Signa re DIN E. LI Nf � Comm.0 978764 s oranp� eaItor CoOn.Expires Na►.22,1996 r~ . (This area for official notarial seal) Title of Document Date of Document No. of Pages Other signatures not acknowledged 3008(1/94) (Genel•al) First American Title Insurance Company AGENCY RIDER TO REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DEED OF TRUST AFFORDABLE HOUSING PROGRAM This rider to the Redevelopment Agency of the City of Huntington Beach Deed of Trust which was executed by key w-1c tckx,%ye,-&`(Trustor for the property located at y-D CN (Aki cc� A S) is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated -[ — __, , 19-4, to which this rider is attached as Exhibit "C" and incorporated by reference (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of -�uyen�Ll-- Ue 4�wu`ayc� Dollars ($ a5 0 1 (the "Loan Amount") with simple interest to accrue at five percent (5%) yearly. All terms in this Rider to Redevelopment Agency of the City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1 . Acceleration/Due on Sale. A. Except as provided herein, the Loan and all interest accrued thereon shall be due and payable upon (i) sale or transfer to a Buyer not qualified to participate in the Agency's Affordable Housing Loan Program or not approved by the Agency ("Qualified Buyer"), or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any amortization period longer than the Loan secured by the First Mortgage, or (iv) Trustor being in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the Property, or tv) Trustor violates any condition of the Deed of Trust or Promissory Note, or (vi) the death of Trustor (unless the Trustor's household, occupying the Property, contains more than one qualified participant in the affordable housing program pursuant to which this Loan is being made, and at least one qualified participant survives). At the request of Trustor, the Agency may, in its sole discretion, extend the term of the Loan. 1 7l1oandoclagcyridr/07/12194 GTY CLERK EYhtb i } A Tb _D-c,-) t-' cl 0 t " s -r- CP-\,v P- rc,�) PARCEL, 1: UNIT 110. 5, CONSISTING OF CE IA 9 AIRSPACE AND SURFACE ELEMENTS, AS SHC74vN AND DESCRIBED IN THE CI NEVZTUNI M PLAN ("PLAN-) FOR BRISAS DEL MAR LOCATED ON LOT 1 OF TRACT 14757, AS SHOWN ON A SUSDIVISIC ITT MAP RECORDED ON SEPTIIMBER L, 1993, IN BOOK 701, PAGES 42 THROUGH 43, INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE ORANGE COUNTY RECORDER ("OFFICIAL RECORDS") , WHICH PLAN WAS RECORDED ON SEPTIIMBER 15, 1993, AS INS"I' PENT NO. 93-0621742, OF OFFICIAL RECORDS, CALIFORNIA. PARCEL, 2: AN UNDIVIDED ONE FORTY-FOURTH (L/44) FEE SIMPLE rNTER ST AS A TENANT IN SON IN AND TO NODULE B SHOWN ON THE PLAN AND DEFIiED) IN THE DECLARATION REFERRED TO BELOW AS THE "COMMON AREA" . EXCEPT THH R...FROM ALL OIL, CAS, MINERALS AMID OTHER HYDROCARBON SUBSTANCES LYING BELOW A DEPTH OF 500 FEET WITHOUT ANY RI= TO ENTER UPON THE SURFACE OR THE SUBSURFACE OF SAID ?AND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INSTRUMENTS OF RECORD. PARCH 3: NONEXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, EN UOYNET, DRAINAGE.,, ENCROACHMENT,HMENT,_ SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL AS MAY BE D'i359 IN THE PLAN, AND AS ARE DESCRIBED IN THE DECLARATION. PARS 4: E 111 S IVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR U E FOR PARKING PUTAkES DESCRIBED AS EXCZUSIVE USE AREAS IN THE D:CIS'RATIO l , OVER KwIOKS OF LOT 1 OF TRACT 14757 SHOWN AND ASSIGNED IN THE PLAN. PARCH 5: AN EXC01SIVE EASEMENT APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE, FOR USE FOR PATIO, BALCONY, AND FIRE ESCAPE STAIRCASE PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS III THE DECLARATION, AS APPLICABLE, OVER PORTIC NS OF LOT L OF TRACT 14757 AS SHOWN, ASSIGNED AND DESCRIBED IN THE PLAN. CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK DEED CERTIFICATION This is to certify that the interest in real property conveyed by the Deed of Trust dated 9-/-95� from //ecforCtfii veres. anti ITZIAR * to the City of Huntington Beach, a municipal corporation, is hereby accepted by the undersigned officer or agent on behalf of the City Council of the CITY OF HUNTINGTON BEACH, pursuant to the authority conferred by Resolution No. 3537 of the City Council of the City of Huntington Beach adopted on August 7, 1972, and the grantee consents to the recordation thereof by its duly authorized officer. *CUESTA—APARICIO Dated: CITY OF HUNTINGTON BEACH Connie Brockway City Clerk BY: epu ity Clerk {Telephone:714-536-52271 PARCEL, 1: UNIT NO. 5, CONSISTING OF CERTAIN AIRSPACE AMID SURFACE ELEMENTS, AS SHOWN AND DESCRIBED IN THE CnNDC MINIUM PLAN ("PLAN") FOR BRISAS DEL MAR LOCATED ch LOT 1 OF TRACT 14757, AS SHOWN ON A SUBDIVISION MAP RECORDED ON SEPTEMBER L, 1993, IN BOOK 701, PAGES 42 THROUaH 43, INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF T ORANGE COUNTY RECORDER ("OFFICIAL RECORDS") , WHICH PLAN WAS RE(XIDSD ON SEPT151ER 15, 1993, AS INSTRi*lENT NO. 93-0621742, OF OFFICIAL RECORDS, CALIFORNIA. PARCEL 2: AN UNDIVIDED ONE FORTY-FOURTH Q44) FEE SIMPLE INTEREST AS A TENANT IN C=MVMC7N IN AND TO MODULE B SaIN Of THE PLAN AND DEFINED IN THE DECLARATION REFERRED TO BELOW AS THE "CLAN AREA". EXCEPT THEREFROM ALL OIL, GAS, FUNERALS AMID OTHER MYEPCCARB19 SUBSTANCES LYING BELOW A DEFIFI OFF 500 FEET WITHOUT ANY RIGHT TO TIER UPON THE SURFACE OR THE SUBSURFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INSTRUMENTS OF RECORD. PARCEL 3: NONEXCLUSIVE EASEMEN H FOR ACCESS, INGRESS, EGRESS, USE, ENUOYMEDTT', DRAINAGE, ENCROACHMENT,TT,_ SUPPORT, MAINTENANCE, REPAIRS AND FOR DER PURPOSES, ALL AS MAY BE SHOWN IN THE PLAN, AND AS ARE DESCRIBED IN THE DECLARATION. PARCEL 4: EXCA,L;S IVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR USE FOR PA:KING PUTTIES DESCRIBED AS r.E371SITE USE AREAS IN THE DECLARATION, OVER PORTIONS OF LOT 1 OF TRACT 14757 SHOWN AND ASSICNED IN THE PLAN_ PARCEL 5: AN EXCLUSIVE EASEMENT APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE, POR USE FOR PATIO, BALCONY, AND FIRE ESCAPE STAIRCASE PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT L OF TRACT 14757 AS SHE, ASSICNED AMID DESCRIBED IN THE PLAN. GOVERNMENT CODE 27361.7 1 CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLO S: 1 NAME OF THE NOTARY: ']ATE COMMISSION EXPIRES: --2- COUNTY WHERE BOND IS FILED: COMMISSION NO.: _ q-7S:ZCDLl - - - - - - - - - - _ _ _ _ - - _ MANUFACTURER/VENDOR NO.: Lt, PLACE OF EXECUTIO -14-6c - DATE: SIGNATURE: ORANGE COAST TITLE COMPANY Form No. OCT-8b - O } STATE OF CALIFORNI }ss. COUNTY OF On before me, e, personally appeared cl C- , personally known to me (or p oved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS m d and official seal. Signature Omm 978T64 1O1NM P1BLIC-CNFGM (This a ea fcr official rc'er al sea!) QDM0=!M 19 v Title of Document Date of Document No. of Pages Other signatures not acknowledged 3008 (t94) (Generall First American Title Insurance Company B. Exception to Repayment Provision. Accrued interest shall be due and payable upon sale of the Property to a Qualified Buyer who assumes the Agency Loan only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one (1) herein, and any pro rata share applicable to any portion of a remaining year. 2. Occupancy Standards. The Property shall be used as the personal residence of.Trustor and Trustor's immediate family and for no other purpose. Trustor shall not enter into an agreement for the rental or lease of the Property. 3. Protection of Beneficiary's Rights in the Property. A. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorney's fees and entering on the Property to make repairs. Although Beneficiary may take action} under this Section, Beneficiary does not have to do so. B. Any amount disbursed by Beneficiary under this section, shall become additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to Trustor requesting payment. 4. Equity Share. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of the Loan Agreement, Trustor shall pay to Beneficiary 2 711oandoclagcyridr/07112/94 CITY (-I FD V • ' J concurrent with the principal and accrued interest, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1 . Prior to fifth anniversary fifty percent (50%) of the Agency Deed of Trust: 2. After fifth anniversary but forty-eight percent (48%) prior to sixth anniversary: 3. After sixth anniversary but forty-six percent (460/8) prior to seventh anniversary: 4. After seventh anniversary but forty-four percent (44%) prior to eighth anniversary: 5. After eighth anniversary but forty-two percent (42%) prior to ninth anniversary: 6. After ninth anniversary but forty percent (40%) prior to tenth anniversary: 7. After tenth anniversary but thirty-eight percent (38%) prior to eleventh anniversary: 8. After eleventh anniversary but thirty-six percent (36%) prior to twelfth anniversary: 9. After twelfth anniversary but thirty-four percent (34%) prior to thirteenth anniversary: 10. After thirteenth anniversary but thirty-two percent (32%) prior to fourteenth anniversary: 11. After fourteenth anniversary but thirty percent (30%) prior to fifteenth anniversary: 12. After fifteenth anniversary but twenty-eight percent (28%) prior to sixteenth anniversary: 3 711oa ndoclagcyridr107/12194 13. After sixteenth anniversary but twenty-six percent (26%) prior to seventeenth anniversary: 14. After seventeenth anniversary but twenty-four percent (24%) prior to eighteenth anniversary: 15. After eighteenth anniversary but twenty-two percent (22%) prior to nineteenth anniversary: 16. After nineteenth anniversary but twenty percent (20%) prior to twentieth anniversary: 17. After twentieth anniversary but eighteen percent (18%) prior to twenty-first anniversary: 18. After twenty-first anniversary but sixteen percent (16%) prior to twenty-second anniversary: 19. After twenty-second anniversary but fourteen percent (14%) prior to twenty-third anniversary: 20. After twenty-third anniversary but twe[ve percent (12%) prior to twenty-fourth anniversary: 21 . After twenty-fourth anniversary but ten percent (10%) prior to twenty-fifth anniversary: 22. After twenty-fifth anniversary but eight percent (8%) prior to twenty-sixth anniversary: 23. After twenty-sixth anniversary but six percent (6%) prior to twenty-seventh anniversary: 24. After twenty-seventh anniversary but four percent (4%) prior to twenty-eighth anniversary: 25. After twenty-eighth anniversary but two percent (2%) prior to twenty-ninth anniversary: 26. After twenty-ninth anniversary but one percent (1 %) prior to thirtieth anniversary: 27. After thirtieth anniversary: zero percent (0%) 4 711oa ndoclagcyridr107112194 CITY cLErt( The "Purchase Price" is the original purchase price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commission, loan fees or any other closing or transaction costs. The "Sales Price" is the price to be paid by the buyer of the Property (the "Buyer") to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. In the event of sale of the Property and at the election of the Agency, the Agency may appoint a certified, independent appraiser to conduct any appraisal of the Property, at Participant's expense to assist the Agency in determining if the Sales Price is at or near the fair market value of the Property at such time. If the Sales Price is determined by the appraisal to be three percent (3%) or more below the fair market value of the Property as estimated in said appraisal, then the "Sales Price" for purposes of determining the Equity Share Amount shall be the fair market value of the Property established in said appraisal. PARTICIPANT ACKNOWLEDGES AND AGREES THAT IN THE EVENT THAT THE LOAN WHICH THE DEED OF TRUST SECURES BECOMES DUE AND PAYABLE PRIOR TO THE 30TH ANNIVERSARY OF THE LOAN AGREEMENT, PARTICIPANT SHALL PAY TO AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION. THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS TO ABIDE BY COVENANTS OR OTHERWISE FAILS TO COMPLY WITH THE PROVISIONS OF THIS AGREEMENT OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT QUALIFIED BY THE AGENCY IN ACCORDANCE WITH PARAGRAPH "C" BELOW. \ '' ! PARTICIPANT/TRUSTOR AGENCY 5 711oandocla gcyredr107112/94 �C1IY CLERK The value of all capital improvements to the Property made while Participant owned and occupied the Property shall be deducted from the Sales'Price when calculating the Equity Share Amount, if Participant complies with the following: The costs incurred by the Participant for capital improvements shall be deducted from the Sales Price only if Participant submits the following to the Agency: (i) an itemized list of the improvements, (ii) reliable proof of completion of the improvements (as evidenced e.g., by final building permits or certificate of completion), and (iii) reliable evidence of the cost of the improvements and that Participant paid those costs (as evidenced e.g., by an itemized invoice or receipt). Notwithstanding the foregoing, Participant's obligation to pay the Equity Share Amount is subject to a superior right of Participant, upon termination of the Agency Loan, to receive repayment of money paid by the Participant without Agency assistance for purchase of the Property (including down payment, installment payments of mortgage principal pursuant to the First Lien, escrow fees, transfer taxes, recording fees, brokerage commissions, and similar costs actually paid by the Participant) and money paid by the Participant for capital improvements to the Property. 5. New Loan to Qualified Buyer. Notwithstanding the provisions herein above, if the Property is sold by the Trustor to a Buyer of low or moderate income, as defined by Section 50093 of the California Health and Safety Code, or any provision of law which may be enacted in the future, replacing Section 50093 or the law which defines "low or moderate" income for the purposes of affordable housing, and approved by Agency, ("Eligible Person or Family") and the Sales Price does not exceed an "affordable housing cost," as defined by Section 50052.5 of the California Health and Safety Code, to such Buyer, and the Buyer assumes the Trustor's loan, then no Equity Share Amount is due to the Beneficiary upon such sale. In order to verify the Buyer's status as an Eligible Person or Family, Trustor shall submit to the Beneficiary, together with the notice of 6 711oandoclagcyridrl07/12194 CITY CLERK proposed sale pursuant to the Loan Agreement, the identity of the proposed Buyer and adequate information evidencing the income of the proposed Buyer. Said income information shall include original or true copies of pay stubs, income tax records or other financial documents in order that the Beneficiary may determine and verify the household income of the proposed Buyer to determine Eligible Person or Family status and whether the Property is available to such Buyer at affordable housing cost. If the Beneficiary is unable to verify the Buyer's income as provided herein, then the Buyer's income shall be deemed to exceed the maximum allowable income limit for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. In the event that sale or transfer is made to an Eligible Person or Family, interest which has accrued at the time of the sale (upon close of escrow) shall be due and payable, unless the Property has appreciated in value in an amount which would be equal to or less than the value of the Property if the appreciation rate had been five per cent (5%) per year over the original price paid by the Trustor. If the price of the Property upon sale to an Eligible Buyer reflects less than 5% appreciation per year over the price paid by the Trustor at the time of original purchase, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 6. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien"} held by an institutional lender or investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust. Thus, in the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the 7 7/16 andocla gcyridrl07112194 i i:111r CLERK Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the Trustor), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 7. Obligation to Refrain from Discrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 11 the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; and 3) the Agency Deed of Trust. 8 711oa ndoclagcyridrl07112/94 JQV CLERIC The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First and Second Liens, deeds of trust, or mortgages, requesting a statutory notice of default as set for the in the California Civil Code. TRUSTOR'S SIGNATURE TRUSTOR'S SIGNATURE APPROV AST FORM: Agency Counsel 9 711 oa n d o c!a g c Yr i d r/0 712 519 4 4MY CLERK notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property is directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 71DEEDRENT1O7112194/B 4 CITY CLcRK 6. To pay immediately and-without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. f 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such 71DEEDRENT107/12/94/B 5 CITY CLERK lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, at Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. MEEDRENT107112/941B 8 QTY CUR( as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby, or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in 710EEDRENT1071121941B 7 PTY CLERK lawful money of the United States, payable at time of sale. Trustee may postpone sate of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be-conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs; fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds afi parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. in this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, at Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 71DEEDRENT107112/9418 $ Ory CLERK 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable change, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee.is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. 71DEEDRENT10711219418 9 CITY CLERK THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth. TRUSTOR: By:_ �- -_ By-. A ro By: APPROVED AS TO FORM: Agency Counsel rY 71DEEDRENT10712 5 19 41B 10 C1FY CLERK ALTA Loan Policy S' Qoo Form 1 46 (10.47.92) Policy of Title Insurance 117V Issued By M 183-5 8 7 8 2 6 Nations Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B ANDTHE CONDITIONS AND STIPULATIONS,NATIONS TITLE INSURANCE COMPANY,a Kansas corporation,herein called the Company,insures,as of Dale of Policy shown in Schedule A,against loss or damage,not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land; 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage: 7. Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material: (a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date of Policy; or (b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to Date of Policy and which is financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance; 8. Any assessments for street improvements under construction orcompleted at Date of Policywhich now have gained or hereafter may gain priority over the insured mortgage; or 9. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A,or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs,attorneys'fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. Nations Title Insurance Company By: President Countersigned: Attest: a�4 dle� By Secretary we Authorized Officer or Agent 1720 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and statutory lien for services,labor or materiaf or the extent insurance is afforded the Company will not pay Joss or damage,costs,attorneys'fees or expenses which herein as to assessments for street improvements under construction or com- arise by reason of: pleted at Date of Policy): or 1. (a) Any lavr,ordinance or governmental regulation(including but not limited to (e) resulting in loss or damage which would not have been sustained if the in- building and zoning taws,ordinances,or regulations)restricting,regulating, sured claimant had paid value for the insured mortgage. prohibiting or relating to(i)the occupancy, use,or enjoyment of the land; 4. Ulnenforceability of the lien of the insured mortgage because of the inability or (h)the character,dimensions or location of any improvement now or hereafter failure of the insured at Date of Policy,or the inability or failure of any subsequent erected on the land;(iii)a separation in ownership or a change in the dimen- owner of the indebtedness, to comply with the applicable doing business laws sions or area of the land or any parcel of which the land is or was a part: of the state in which the land is situated. or(iv)environmental protection,or the effect of any violation of these lays. 5. Invalidity or unenforceability of the lien of the insured mortgage.or claim thereof, ordinances or governmental regulations. except to the extent that a notice which arises out of the transaction evidenced by the insured mortgage and is of the enforcement thereof or a notice of a defect,lien or encumbrance resulting based upon usury or any consumer credit protection or truth in fending law. from a violation or alleged violation affecting the land has been recorded in 6. Any statutory lien for services,labor or materials(or the claim of priority of any the public records at Date of Policy. statutory lien for services. labor or materials over the lien of the insured mort- (b) Any governmental police pourer not excluded by(a)above,except to the extent gage)arising from an improvement or work related to the land which is contracted that a notice of the exercise thereof or a notice of a defect,lien or encum- for and commenced subsequent to Date of Policy and is not financed in whole brance resulting from a violation or alleged violation affecting the land has or in part by proceeds of the indebtedness secured by the insured mortgage which been recorded in the public records at Date of Policy. at Date of Policy the insured has advanced or is obligated to advance. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded Z Any claim.which arises out of the transaction creating the interest of the mortgagee in the public records at Date of Policy,but not excluding from coverage any taking insured by this policy, by reason of the operation of federal bankruptcy, state which has occurred prior to Dale of Policy which would be binding on the rights insolvency, or similar creditors' rights laws, that is based on: of a purchaser for value without knowledge. (a) the transaction creating the interest of the insured mortgagee being deemed 3. Defects, liens, encumbrances, adverse claims or other matters: a fraudulent conveyance or fraudulent transfer; or (a) created. suffered, assumed or agreed to by the insured claimant; (b) the subordination of the interest of the insured mortgagee as a result of the (b) not known to the Company,not recorded in the public records at Date of Policy, application of the doctrine of equitable subordination: or but known to the insured claimant and not disclosed in writing to the Com- (c) the transaction creating the interest of the insured mortgagee being deemed pany by the insured claimant prior to the date the insured claimant became a preferential transfer except where the preferential transfer results from the an insured under this policy; failure: (c) resulting in no loss or damage to the insured claimant: (i) to timely record the instrument of transfer; or (d) attaching or created subsequent to Date of Policy(except to the extent that (ii) of such recordation to impart notice to a purchaser for value or a judge- this policy insures the priority of the lien of the insured mortgage over any ment or lien creditor. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS, contractual condition requiring the de ivery of marketable title. Or interest or the lien of the insured mortgage.as insured,and The following terms when used in this policy mean: which might cause loss or damage for which the Company may 2. CONTINUATION OF INSURANCE. (a) "insured":the insured named in Schedule A.The term be liable by virtue of This policy,or(iii)if title to the estate or "insured"also includes shall co After Acquisition e as of )a Title The coverage of this policy an insured interest or the lien o1 the insured mortgage,as insured,is re- (i) the Owner of the indebtedness secured by the insured who acquires ntinue lall orca y part of tle he esltate or�iintterer ofst in the land jetted as unmarketable.If prompt notice shall not be given to. mortgage and each successor in avinership of the indebtedness by foreclosure,trustee's sale,conveyance in lieu of foreclosure, the Company,then as to the insured all liability of the Com- except a successor who is an obligor under the provisions of or other legal manner which discharges the lien of the insured pany shall terminate with regard to the matter Or matters for Section 12(c)of these Conditions and Stipulations(reserving. mortgage:(ii)a transferee of the estate or interest so acquired which prompt notice is required.provided,however.that failure however,all rights and defenses as to any successor that the to notify the Company shall in no case prejudice the rights of Company would have had against any predecessor insured. from an insured corporation, rovided the transferee is the any insured underth s policy unless the Company shall be pre- unless the successor acquired the indebtedness as a purchaser parent or wholly-oemed subsidiaryof the insured corporatidr:, judiced by the fwWre and then only to the extent of the prejudice. for value without knowledge of the asserted defect, lien, and their corporate successors by operation of law and not by encumbrance,adverse claim or other matter insured against purchase.subject to any rights or defenses the Company may 4. DEFENSE AND PROSECUTION OF ACTIONS; bythis policy as affecting title to the estate or interest in theland): have against any predecessor:nsureds:and(iii)any govern- DUTY OF INSURED CLAIMANT TO COOPERATE. (ii) any governmental agency or governmental insiru mental agency or governmental instrumentality which acquires (a) Upon written request by the insured and subject to mentality which is an insurer or guarantor under an insurance all or any pan of the estate or interest pursuant to a contract the options contained in Section 6 of these Conditions and contract or guaranty insuring or guaranteeing the indebtedness of insurance or guaranty insuring or guaranteeing the in- Stipulations. the Company, at its awn cost and without secured by the insured mortgage.or any part thereof,whether debtedness secured by the insured mortgage. unreasonable delay,shall provide for the defense of an insured named as an insured herein or not: (b) After Conveyance of Title.The coverage of this policy in litigation in which any third party asserts a claim adverse (iii) the parties designated in Section 2(a) of these shall continue in force as of Date of Policy in favor of an in- to the title or interest as insured,but only as to those stated Conditions and Stipulations. sured only so long as the insured retains an estate or interest causes of action alleging a defect,lien or encumbrance or other (b) "insured claimant`: an insured claiming loss or in the land,or holds an indebtedness secured by a purchase matter insured against by this policy.The Company shall have damage_ money mortgage given by a purchaser from the insured,or the right to select counsel of its choice(subject to the right (c) `knowledge' or "known": actual knowledge, not only so long as the insured sha'I have liability by reason of of the insured to object for reasonable cause)to represent the constructive knowledge or notice which may be imputed to an covenants of warranty made by the insured in any transfer or insured as to those statea causes of action and shall not be insured by reason of the public records as defined in this policy conveyance of the estate or interest.This policy shall not cap- Iiab.e for and will not pay the fees of any other counsel.The or any other records which impart constructive notice of matters tinue in force in favor of any purchaser from the insured of either Company will not pay any fees,costs or expenses incurred by affecting the land. (i) an estate or interest in the land, or(ii)an indebtedness the insured in the defense of those causes of action which allege (d) 'land":the(and described or referred to in Schedule secured by a purchase money mortgage given to the insured matters not insured against by this policy. (A).and improvements affixed thereto which by law constitute fc) Amount of Insurance:The amount of insurance after (b) The Company shall have the right.at its own cost,to real property.The term'land"does not include any property the acquisition or after the conveyance shall in neither event institute and prosecute any action or proceeding or to do any beyond the lines of the area described or referred to in Schedule exceed the least of: other act which in its opinion may be necessary or desirable (A),nor any right.title,interest,estate or easement in abutting (i) The amount of insurance stated in Schedule A: to establish the title to the estate or interest or the lien of the streets,roads,avenues.alleys,lanes,:rays or waterways,but (ii) The amount of the principal of the indebtedness insured mortgage,as insured,or to prevent or reduce loss or nothing herein shall modify or limit the extent to which a right secured by the insured mortgage as of Date of Policy,interest damage to the insured.The Company may take any appropriate of access to and from the land is insured by this policy- thereon,expenses of foreclosure,amounts advanced pursuant action under the terms of this policy,whether or not it shall (e) "mortgage-: deed of trust.trust deed,or to the insured mortgage to assure compliance with laws or to be liable hereunder,and shall not thereby concede liability or other security instrument. protect the lien of the insured mortgage prior to the time of waive any provision of this policy.If the Company shall exer- (f) 'public records": records established under state acquisition of the estate or interest in the land and secured cise its rights under this paragraph, it shall do so diligently_ statutes at Date of Policy for the purpose of imparting con- thereby and reasonable amounts expended to prevent deterio• (c) Whenever the Company shall have brought an action structive notice Of matters relating to real property to purchasers ration of improvements. but reduced by the amount of a'I or interposed a defense as required or permitted by the provi- for value and without knowledge.With respect to Section l(a)(iv) payments made; or sions of this policy,Vie Company may pursue any hUgatiorn to of the Exclusions From Coverage,'-public records"shall also (in) The amount paid by any governmental agency or final determination by a court of competent jurisdiction and include environmental protection liens filed in the records of governmental instrumentality.if the agency or instrumentality expressly reserves the right, in its sole discretion.to appeal the clerk of the United States district court for the district in is the insured claimant.in the acquisition of the estate or interest from any adverse judgment or order which the land is located, in satisfaction of its insurance contract or guaranty. (d) In all cases where this policy permits or requires the (g) "unmarketability of the title":an alleged or apparent 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. Company to prosecute or provide for the defense of any ac- matter affecting the title to the land,not excluded or excepted The insured shall notify the Company promptly in writing(i) tion or proceeding,the insured shall secure to the Company from coverage,which would entitle a purchaser of the estate in case of any litigation as set forth in Section 4(a)below,(ii) the right to SO prosecute or provide defense in the action or or interest described in Schedule A or the insured�ge in case knowledge shall come to an insured hereund 'any proceeding,and all appeals therein.and permit the Company to be released from the obligation to purchase by a claim of title Or interest:;-hich is adverse to the tale to ate to use,at its option.the name of the insured for this purpose. 1720 (continued on inside back cover) • CONDITIONS AND STIPULATIO (Continued from inside front cover)* Whenever requested by the Company,the insured.at the Corn- (i) to pay or othe;vise settle with other parties for or in SecCol 2(a)of these Condit;Ons and Stipulations shall not pany's expense,shall give the Company all reasonable aid(j) in the name of an insured claimant any claim insured agaiist reauce pro tanto tole amount o',nsum ice aitomed U-1det this in any action or proceeding. securing evidence, obtaining urider this policy.together with any costs.attorneys fees and policy except to the extent that the payments reduce the amount witnesses,prosecut:ng or defending the action or proceeding. expenses incurred by the insurec claimant which,vere authoriz- of the indebtedness secured by the insured mortgage. or effecting settlement.and(ii)in any other lawful act which ed by the Company up to the time of payment and which the (b) Paynnem in part by any person of the principal of the in the opinion of the Company may be necessary Or desirable Company is obligated to pay:or indebtedness,or any other obligation secured by the insured to establish the title to the estate or interest,or the lien of the (ii) to pay or otherwise settle with the insured Claimant mortgage,Or any voluntary partial satisfaction or release of the insured mortgage.as insured. If the Company is prejudiced the loss or damage provided for under this policy.together with insured mortgage,to the extent of the payment,satisfaction by the failure of the insured to furnish the required coopera- any costs.attorneys'fees and expenses incurred by the insured or release.shall reduce the amount of insurance pro tanto.The Lion,the Company's obligations to the insured under the policy claimant which were authorized by the Company up to the time amount of insurance may thereafter be ricreasea by accruing shall terminate,including any liability or obligation to defend, of payment and which the Company is obligated to pay. interest and advances made to protect the lien o'the insured prosecute,or continue any litigation,with regard to the mat- Upon the exercise by the Company of either of the options mortgage and secured thereby.with interest thereon,provided ter or matters requiring such cooperation. provided form paragraphs b(i)or(ii).the Company's obligations in no event shall the amount of Insurance be greater than the to the insured under this poicy for the claimed loss or damage. amount of insurance stated in Schedule A. S. PROOF OF LOSS OR DAMAGE. other than the payments required to be made•shall terminate (c) Payment in full by any person or the voluntary satisfac- In addition to and after the notices required under Section including any liability or obligation to defend. prosecute Or tion Or release of the insured mortgage shall terminate all liability 3 of these Conditions and Stipulations have been provided the continue any litigation. of the Company except as provided in Section 2(a)of these Company,a proof of loss or damage signed and sworn to by Conditions and Stipulations. the insured claimant shall be furnished to the Company within 7. DETERMINATION AND EXTENT OF LIABILITY. 90 days after the insured claimant shall ascertain the facts giving This policy is a contract of indemnity against actual monetay 10. LIABILITY NONCUMULATIVE. rise to the loss or damage.The proof of loss or damage shall loss or damage sustained or incurred by the insured claimant If the insured acquires title to the estate or interest in satisfac- describe the defect in,or lien or encumbrance on the title.a who has suffered loss or damage by reason of matters insured lion of the indebtedness secured by the insured mortgage,or other matter insured against by this policy which constitutes against by this policy and only to the extent herein described. any part thereof,it is expressly understood that the amount the basis of loss or damage and shall state, to the extent (a) The liability of the Company under this policy shall not of insurance under this policy shall be reduced by any amount possible. the basis of calculating the amount of the loss or exceed the least ot: the Company may pay under any policy insuring a mortgage damage.If the Company is prejudiced by the failure of the in- (i) the amount o'insurance stated in Schedule A,or. to which exception is taken;n Schedule B or to which the insured sured claimant to provide the required proof of loss or damage, if applicable.the amount Of insurance as defined in Sect on has agreed,assumed.or taken subject.or which is hereafter the Company's obligations lathe insured under the policy shall 2(c)of these Conditions and Stipulations; executed by an insured and which is a charge or lien on the terminate.including any liability or obligation to defend.pro- (ii) the amount of the unpaid principal indebtedness estate or interest described or referred to in Schedule A.and secute,or continue any litigation.with regard to the matter or secured by the insured mortgage as limited or provided under the amount so paid shall be deemed a payment under this policy matters requiring such proof of loss or damage- Section 8 of these Conditions and Stipulations or as reduced In addition,the insured claimant may reasonably be required under Section 9 of these Conditions and Stipulations,at the 11. PAYMENT OF LOSS. to submit to examination under oath by any authorized represen- time the loss or damage insured against by this policy occurs. (a) No payment shal: be made:without producing this lative of the Company and shall produce for examination, together with interest thereon:or policy for endorsement of the payment unless the policy has inspection and copying,at such reasonable times and places (iii) the difference between the value of the insured estate been lost or destroyed,in which case proof of loss or destruc- as may be designated by any authorized representative of the or interest as insured and the value of the insured estate or tion shall be furnished to the satisfaction of the Company. Company,all records,books.ledgers.checks,correspondence interest subject to the defect. lien or encumbrance insured (b) When Iiab'.Iity and the extent of loss or damage has and memoranda.whether bearing a date before or after Date against by this policy. been definitely fixed in accordance wwith these Conditions and of Policy. which reasonably pertain to the loss Or damage. (b) In the event the insurec has acquired the estate or Stipulations.the loss or damage shall be payable within 30 days Further, if requested by any authorized representative of the interest in the manner described in Section 2(a) of these thereafter. Company.the insured claimant shall grant its permission,in Conditions and Stipulations or has conveyed the title.then the writing,for any authorized representative of the Company to liability of the Company shall continue as set forth 0 Section 12. SUBROGATiON UPON PAYMENT OR SETTLEMENT. examine,inspect and copy al records.books.ledgers,checks, 7(a)of these Conditions and Stipulations. (a) The Company's Right of Subrogation.Whenever the correspondence and memoranda in the custody or control of (c) The Company will pay only those costs.attorneys'fees Company shall have settled and paid a claim under this Oolicy. a third party,which reasonably pertain to the loss or damage. and expenses incurred in accordance with Section 4 of these all right of subrogation shall vest in the Company unaffected All information designated as confidential by the insured clai- Conditions and Stipulations. by any act of the insured claimant. mans provided to the Company pursuant to this Section shall The Company shall be subrogatec to and be entitled to ail not be disclosed to others unless,in the reasonable judgment 8. LIMITATION OF LIABILITY. rights and remedies which the insured claimant;mould have had of the Company,it is necessary in the administration of the (a) If the Company establishes the title.or removes the against any person Or property in respect to the claim had this claim.Failure of the insured claimant to submit for examina- alleged defect.lien or encumbrance,or cures the lack of a right policy not been issued-If requested by the Company.the insured tion under oath,produce other reasonably requested information of access to or from the land.or cures the claim of unmarket- claimant shall Cansfer to the Company all rights and remedies or grant permission to secure reasonably necessary informa- ability of title.or otherwise establishes the lien of the insured against arty person Or property necessary in order to perfect lion from third parties as required in this paragraph.unless pro- mortgage,all as insured,in a reasonably diligent manner by this right o'subrogaton.The insured claimant shall permit the hibited by law or governmental regulation.shall terminate any any method, including litigation and the completion of any Company to sue,compromise or settle in the name of the insured I;ab lity of the Company under this policy as to that claim. appeals therefrom,it shall have-ully performed its obligations clamant and to use the name of the insured claimant in any trans- with respect to that:natter and shall not be liable for any loss action or litigation involving these rights or remedies_ 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; or carnage caused thereby. If a payment on account of a claim does not fully cover the TERMINATION OF LIABILITY. (b) In the event of any litigation,including litigation by the loss of the insured claimant,the Company shall be subrogated In case of a claim under this policy,the Company shall have Company or with the Company-S consent.the Company shall to al rights and remedies of the insured c!a'mant after the insured the following options: have no('ability for loss or damage until there has been a final claimant shall have recovered its principal.interest.and costs (a) To Pay or Tender Payment of the Amount of Insurance determination by a court of competent jurisdiction,and disposi- of collection• or to Purchase the Indebtedness. lion of all appeals therefrom.adverse to the title or to the lien (b) The Insured's Rights and Limitations. (i) to pay or tender payment of the amount of insurance of the insured mortgage, as insured. Notwithstanding the foregoing.the owner Of the indebtedness under this policy together with any costs.attorneys fees and (c) The Company shall not be liable for loss or damage secured by the insured mortgage.provided the priorty of the expenses incurred by the insured claimant,which were author- to any insured for liability voluntarily assumed by the insured lien of the insured mortgage or its enforceability is not affectec, ized by the Company,up to the time of payment or tender of in settling any claim or suit without the prior written consent may release or substitute the personal iiabll,ty of any debtor payment and which the Company is obligated to pay;or of the Company. or guarantor•or extend or otherwise modify the terms of pay- (ii) to purchase the indebtedness secured by the insured (d) The Company shalt riot be Iiab'e for: ment,or release a portion of the estate or'nteresi'rom the mortgage for the amount awing thereon together with any costs. (i) any indebtedness created subsequent to Date of Fen Dftheinsured mortgage.or,e:easeagyco:lateral security attorneys'fees and expenses:ncurred by the insured claimant Policy except for advances made to protect the lien of the in- for the°ndebtedgess. which were authorized by the Company up to the time of pur- sured mortgage and secured thereby and reasonable amounts When the permitted acts of the insured claimant occur and chase and which the Company is obligated to pay. expended to prevent deterioration of improvements:or the insured has kno.-dedgeof any claim of title or interest adverse If the Company offers to purchase the indebtedness as herein 00 constructio loan advances made subsequent to to the title to the estate or interest or the priority or enforceability provided.the owner of the indebtedness shall transfer.assign. Date of Policy,except construction loan advances made subse- of the lien at the insured mortgage•as insured,the Company and convey the indebtedness and the insured mortgage, quent to Date of Policy for the purpose of financing in whole shall be required to pay only that part of any losses insured together with any col ateral security•to the Company upon pay- or in part the Construction of an improvement to the land iwh ch aga nst by this policy which shall exceed the amount.if any, ment therefor. at Date of Policy were secured 5y the insured mortgage and lost to the Company by reason of the impairment by the.nsured Upon the exercise by the Company of either of the options which the insured was and continued to be ON gated to ad- claimant of the Company's right of subrogation. provided for in paragraphs a(i)or(ii).all liability and obliga- vance at and after Date of Policy. (c) The Company's Rights Against Non-Insured Obligors. Vans to the insured under this policy.other than to make the The Company's right of subrogation against non-insured paymentrequired in those paragraphs,shall terminate,including 9. REDUCTION OF INSURANCE; obligors shall exist and shall include. without'imitation,the any liability or obligation to defend.prosecute.or continue any REDUCTION OR TERMINATION OF LIABILITY. rights of the insured to indemnities,guaranties.other policies litigation.and the policy shall be surrendered to the Company (a) All payments uncer this policy.except Dayments made of insurance or bonds.notwithstanding any terms or conditions for cancellatian. for costs,attorneys'fees and expenses.shall mcuce the amount contaned in those instruments which provide for subrogat;o7. (b) To Pay or Otherwise Settle With Parties Other than the of the insurance pro Tanta.However,any payments made prior rights by reason of this policy The Company's right of sub- Insured or With the Insured Claimant to the acquisition of title to the estate or interest as provided rogation shall not be avoided by acquisition of the insui-ec (continued on bacx cover) 1720 ONDITIONS AND STIPULATIONS (Continued from inside back cover) . mortgage by an obligor(except an obligor described in Section the Rules in effect on the date the demand for arbitration is made coverec heresy or by any action asserting sucn Caim,shall be 1(a)(ii)of these Conditions and Stipulatiors)who acquires the or, at the option of the insured.the Rules in effect at Date of restricted to this policy. insured mortgage as a result of an indemnity,guarantee,other Policy shall be binding upon the parties.The ar:ard may include (c) No amendment of or endorsement to this polity can policy of insurance,or bond and the obligor vri!I not be an insured attorneys'fees only if the laws of the state in which the land is be made except by a writing endorsed hereon or attached hereto under this policy, notwithstanding Section 1(a)(i) of these located permit a court to award attorneys'fees to a prevailing signed by either the President,a Vice President,the Secretary. Conditions and Stipulations. party.Judgment upon the award rendered by the Arbitrator(s) an Assisfam Secretary,or va'.idabng officer or authorized signaloy may be entered in any court having jurisdiction thereof. of the Company. 13. ARBITRATION. The!aw of the situs of the land shall apply to aq arbitration Unless prohibited by applicable law. ?ither the Company under the Title Insurance Arbitration Ruses- 15. SEVERABILITY. or the insured may demand arbitration pursuant to the Title A copy of the Rules may be obtained from the Company upon In the event azy provision of this policy is held invalid or uren- Insurance Arbitration Rules of the American Arbitration Asso- request. forceable under applicable law,the policy shall be deemed not ciation.Arbitrable matters may include.but are not limited to, to include that provision and all other provisions shall remain any controversy or claim between the Company and the insured 14. LIABILITY LIMITED TO THIS POLICY; in fu!I force and effect. arising out of or relating to this pol.-cy.any service of the Com• POLICY ENTIRE CONTRACT. pany in connection with its issuance or the breach of a policy (a) This policy together v.ith all endorsements. if any, 16. NOTICES,WHERE SENT. provision or other obligation. All arbitrate a matters when the attached hereto by the Company is the entire policy and con- All notices,required to be given the Company anc arry state- Amount of Insurance is$1,000,000 or less shall be arbitrated tract between the insured and the Company.In nterpreting any ment in vrnting required to be fumished the Company shall,nclude at the option of either the Company or the insured.All arbitrable provision of this policy.this policy sha'I be construed as a whole. the nurnber of this policy and shall be addressed to the Coat- matters when the Amount of Insurance is in excess of S1,0011000 (b) Any claim of loss or damage, whether or not based pany at 6800 College Blvo..Suite 700.Overland Park, Kansas shall be arbitrated only when agreed to by both the Company on negligence. and which arises out of the status at the lien 66211. and the insured.Arbitration pursuant to this policy and under of the insured mortgage or of the title to the estate or interest Policy of Title Insurance Issued By Nations Title Insurance Company 6800 College Blvd./Suite 700/Overland Park, Kansas 66211 913-491-5585 A720 ALTA LOAN POLICY • . SCHEDULE A, TOTAL FEE FOR TITLE, EXAMINATION AND TITLE INSURANCE $75.00 AMOUNT OF INSURANCE: $5,000.00 LOAN NO. RIVERA/APARICIO ORDER NO. 216705-3 POLICY NO. M 183-507826 DATE OF POLICY: SEPTEMBER 9, 1994 AT: 3:59 P.M. 1. NAME OF INSURED: THE CITY OF HUNT NGION BEACH, A MUNICIPAL CORPORATION 2. THE ESIP,TR OR DowmEgr IN THE LAND DESCRIBED IN SCHEDULE A AND WHICH IS COVERED BY THIS POLICY IS: A AS DEFINED TN SECTION 783 OF THE CALIFORNIA CIVIL CODE, IN FEE. 3. THE ESTATE OR INTEREST REFERRED TO HEREIN, IS AT DATE OF POLICY VESTED IN: HECTOR C. RIVERA AND ITZIAR CUE` M-APARICIO, HUSBAND AND WIFE, AS JOINT TENANTS 4. THE MORTGAGE, HEREIN REFERRED TO AS THE INSURED MORTGAGE, AND THE ASSIGNMENTS THEREOF, IF ANY, ARE DESCRIBED AS FOLLOWS: A DEED OF TRUST TO SECURE AN AMOUNT: $5,000.00 TRLTSIOR: HECTOR C. RIVERA AND ITZIAR CUESTA-APARICIO, HUSBAND AND WIFE, AS JOINT TENNNRMS TRUSTEE: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTIM ON BEACH, A PUBLIC BODY CORPORATE AND POLITIC BIINEFICIARY: THE CITY OF HUNTI19=9 BEACH, A MUNICIPAL CORPORATION DATED: SEPrfEMBER 1, 1994 RECORDED: SEP'T''FMBER 9, 1994 AS INSTRLl7ENT!' NO. 94-5 5143 3, OF OFFICIAL RECORDS Cat NO. : 216705-3 a PACE ND. : 2 SCHEDULE A (CCNI INUED) 5. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOM: THE LAND IS SIT[.P= IN THE STATE OF CALIFORNIA OOUIJI'Y OF ORS PARCEL 1: UNIT NO. 5, CONSISTING OF CERTAIN AIRSPACE AMID SURFACE E10 ENTS, AS SHOWN AND DESCRIBED IN THE C ONDOt 7UM PLAN („PLAN") FOR BRISAS DEL MAR LOCATED ON LOT 1 OF TRACT 14757, AS SHC WN ON A SUBDIVISICN MAP RECI7RDID ON SERIZABER 1, 1993, IN BOOK 701, PAGES 42 THRCkJGH 43, INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE ORANGE COUNTY RECORDER ("OFFICIAL RECORDS") ,, WHICH PLAN WAS RECORDED ON SEPTEMBER 15, 1993, AS INSIRLlvlENT NO. 93-0621742, OF OFFICIAL RECORDS, CALIFORNIA. PARCEL 2: AN UNDIVIDED CNE FORTY-FOURTH (1/44) FEE SIlKPLE INTEREST AS A TROWr IN CCU IN AND TO NMJLE B SHOWN ON THE PLAN AND DEF= IN THE DECLARATION REFEP D TO BELOW AS THE "COMMON AREA" . EXCEPT THEREFROM ALL OIL, GAS, MINERALS AND MIER HYDROCARBON SUBSTANCES ES LYING BELOW A DEPTH OF 500 FEET WITHCM ANY RIGHT TO ENTER UPON THE SURFACE OR THE SUBSURFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INSIRUMEiVIS OF RECORD. PARCEL 3: NONEXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, ASS, USE, ENJOYMENT, DRAT AM, ENCROAC1114ENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTFER PU UOSFS, ALL AS MAY BE SHOWN IN THE PLAN, AND AS ARE DESCRIBED IN THE DECLARATION. PARCEL 4: EXCLUSIVE EASEMENTS APPLMU.MNT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, OVER PORTIONS OF LOUT' 1 OF TRACT 14757 SHOWN AND ASSIGNED IN THE PLAN. PARCEL 5: AN EXCLUSIVE EASEMENT APPURT'ENVU TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE, FOR USE FOR PATIO, BA1 ONY, AND FIRE ESCAPE 91AAZRCA.SE PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT 1 OF TRACT 14757 AS SHOWN, ASSICIJED AND DESCRIBED IN THE PLAN. Ott ND. : 216705-3 i • ALTA LOAN POLICY PAGE ICU. : 3 SCHEDULE B PART I THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AMID THE COMPANY WILL NOT PAY COM, ATTORNEYS' FEES OR EXPENSES) VMCH ARISE BY REASON OF: A. GENERAL AND SPECIAL TAXES, A LIEN NOT YET PAYABLE, FOR THE FISCAL YEAR 1994- 1995. B. THE LIEN OF SUPPL34E nTraT, TAXES, IF ANY, A.S.SF.SSED RRSUANT TO Cl-]AFTER 3.5 0MVIENCING WITH SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE. 1. THE EFFECT OF A C MUNITY OIL AND GAS LEASE EXECUTED BY LOUTS BENSOi AND ELOISE B. BENSON, HIS WIFE AND BY MIE R PERSONS AS TO OTHER LAND, AS LESSORS, AND BY COL]IBIA LEASING AMID DEVELOPING COMPANY, A CORPORATION, AS LESSEE, RECORDED NOVEMBER 6, 1920 IN BOOK 16, PAGE 198 AMID RE-RECORDED AL]= 11, 1921 IN BOOK 25, PAGE 247 OF LEASES, BOTH OF LEASES, TO WHICH RECORD REFERENCE IS MADE FOR FULL PARTICULARS. 2. AN EASEVOU FOR PIPE LINES AND INCIDEETEAL PURPOSES, AS GRANTED TO HUNTINGsTC]N BEACH COMPANY IN THE DEED RECORDED IN BOOK 319, PAGE 149 OF DEEDS, OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRLZENT. 3. COVENANT'S, CONDITIONS AND RESTRICTIC NS IN AN INSIRUMM RECORDED IN BOOK 319, PAGE 149 OF DEEDS, OF OFFICIAL REC7JRDS. THE PROVISIONS, IF ANY, OF SAID INMUVIE T!' MUCH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. 4. AN EASE= FOR PIPE, POLE LINES AND INCIDFlTTAL RJRROLSES, AS GRANTED TO PETROLEUM A'I MWAY COMPANY, LTD., IN THE DEED RECORDED IN BOOK 578, PAGE 269 OF DEEDS, OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRLWIENT. 5. AN EASMY= FOR PIPE LINE AND INCIDENTAL PURPOSES, AS GRANM TO STANDARD OIL COMPANY OF CALIFORNIA IN THE DEED RECORDED IN BOOK 865, PAGE 15 OF OFFICIAL RECORDS, ALONG THAT PORTICN OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 6. AN EASE�T FOR PIPE LINES AND INCIDENTLAL R POSFS, AS GRANTED TO STAMIDARD OIL COMPANY OF CALIFORNIA AND SI'AD� GASOLINE COMPANY, IN THE DEED RECORDED IN BOOK 3577, PAGE 119 OF OFFICIAL RECORDS, ALCM THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRLMU. 7. AN EA.SE�T FOR PIPE LINES AND INCIDRML PURPOSES, AS GRANTED TO THE TEXAS COMPANY, A CORPORATION, IN THE DEED RECORDED IN BOOK 3660, PAGE 257 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRLM TT. 8. AN EASEMENT FOR PUBLIC UTILITIES AND INCIDENTAL PURPOSES, AS GRANTED TO THE GENERAL TE EPHCNE COMPANY OF CALIFORNIA, A CORPORATION, IN DEED RECORDED AS INSTRLMERT NO. 87-440298 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRL4TT'. SAID DEED PROVIDES THAT NO BUILDING OR STRUCTURE SHALL BE PLACED OR MAINTAINED ON SAID FMFN ENr. CRUM ND. : 216705-3 PACE NO. : 4 9. THE 'TERMS, PROVISIONS AND CONIDITIONS ClONMINED IN A DOCUMENT ENTITLE© "AFFORDABLE HOUSING RFSTRICTICIN AMID 07VENANT", EXECUTED BY AMID BETWEEN BEAC FRONT LAKE STREET PROPERTIES AND THE CITY OF HUNTINGTON BEACH, RECORDED SEPTEMBER 2, 1987 AS INSIRLMTr NO. 87-500026 OF OFFICIAL RECORDS. 10. AN EASFI]TT FOR PUBLIC UTILITIES AMID INCIDENTAL PURPOSES, AS GRANTED TO SaM4ERN CALIFORNIA EDISON COMPANY, A CORPORATION, IN DEED RECORDED AS INSIRLZEW NO. 87-534842 OF OFFICIAL RECORDS, ALONG, THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRLM�T. 11. AN EASEMENT FOR MkTER MAIN AMID INCIDM'AL PURPOSES, AS GRANTED TO THE CITY OF HINFINGTON BEACH, A MUNICIPAL CORPORATION IN THE DEED RECORDED AS INSTRUM= NO. 87-583411 OF OFFICIAL REMRDS, ALCM THAT PORTION OF SAID LAM AS MORE PARTICULARLY DESCRIBED IN SAID INSTRIMNT. 12. THE EFFECT OF A SUBSURFACE OIL AMID GAS TEASE, EXEC TIED BY GILBERT M. WILSON AND ELEANOR E. WILSON, HUSBAND AMID WIFE, AS LESSOR, AND R\lUZ PETROLEUM! CORPORATION, A DE LAWARE CORPORATION, AS LESSEE, RECORDED APRIL 18, 1989 AS INSTRUMENT NO. 89-201848 OF OFFICIAL RECORDS, OOVIItIIQG THE LAND LYING BELOW A DEPTH OF FIVE HLNIDRED (500) FEEL' FROM THE SURFACE THEREOF, WITHOUT THE RIGHT OF SURFACE ENTRY ABOVE SAID DEPTH, FOR THE PERIOD AMID UPON THE TERMS, COVENANTS AMID CONDITIONS THEREIN PROVIDED, REFERENCE BEIW- MADE TO THE REGARD THEREOF FOR FULL PARTICULARS. 13. THE TERMS, PROVISIONS AND CONDITIONS OCR BUNED IN A DX AARqT ENTITLED "DECLARATION OF RESTRICTIONS AND SUBDIVISION CCATSII 11, EXEGVIED BY DBE II, A CALIFORNIA LIMITED PARTNERSHIP, RECORDED APRIL 6, 1993 AS INSIRLH4Wr NO. 93-0230267 OF OFFICIAL RECORDS. 14. THE FACT THAT THE OWNERS OF SAID LAND HAVE NO RIGHT OF VEHICULAR ACCESS TO DELAWARE STREET, UTICA AVENUE AND CALIFU NIA STREET, EXCEPT AT SPECIFIED POINTS, SAID RIGHTS HAVING BEEN RELINQ[TISHED BY DEDICATIC N PROVISIONS CAN THE MAP OF SAID TRACT. 15. AN INSTRi)MENT!' ENTITLED "COND MENTU I PLAN" RECORDED SEPTEMBER 15, 1993 AS INSTRU4Wr NO. 93-0621742 OF OFFICIAL RECORDS; REFERENCE BEING MADE TO THE RECORD THEREOF FOR FULL PARTICULARS. ORDER ND. : 216705-3 . . PACE ND. : 5 16. MATTERS IN AN INSTRLUMMEN ' WHICH AMONG OTHER 'THINGS CONTAIN OR MAKE PROVISIONS FOR ASSESSMENTS AND LIENS AND THE SUBORDimATION THEREOF; PROVISIONS RELATING 'Il) PARTITION; RESTRICTIONS (11 SEVERABILITY OF CST INTERESTS; PROVISIONS FOR CERTAIN EASEMENT'S AMID/OR ; AND CONTAINING COVENANTS, C NDITICMS AMID RESTRICTIONS W aC H PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST IN GOOD FAITH AMID FOR VALUE, RECORDED, AS INSTRUMENT NO. 93-0625045 OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSTRuwENT WHICH PROVIDE RESTRICTIONS BASED CAI RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. SAID INSTRUMENT MAY PROVIDE FOR LF VD13 R83ULAR AS WELL AS SPECIAT, ASSESSMENTS. NC ITNITF25'TAKDING THE MOR'ICE PR0TECTICN CLAUSE CC)NTAIl ED IN THE ABOVE MENI'IONED COVENANTS, CONDITIONS AND RESTRICTIONS, THEY PROVIDE THAT THE LIENS AND CHARGES FOR UPKEEP AND MAINTENANCE ARE SUBORDINATE ONLY TO A FIRST MORTGAGE. AN INSTRUMENT DECIDARING A MUDIFICATICaN OF SAID COVENANTS, COD[DITICNS AND RESTRICTIONS WAS RECORDED, AS INSTRUMENT NO. 93-0680846, OF OFFICIAL RECORDS. 17. EASEMENTS FOR IIl]RESS AND E UIS, PARKING, PIPELINE, DRAINAGE, SANITARY SEWERS, PUBLIC UTILITIES, SLOPES AND RISH S INCIDENTAL THERETO, AS DISCIDOSE BY INSTRUMENTS OF R RXI D AMID THE MAP OF SAID TRACT, AFFECTING ONLY THE COMMON AREA. 18. MATTERS IN AN INSTKF$�TI' WHICH ANON OTHER THINGS CONTAIN OR MAKE PROVISIONS FOR ASSESSMENTS AND LIEN'S AND THE SCIBORDINATION THEREOF; PROVISIONS RELATING 11) PARTITION; RESTRICTIONS (11 SEVERABILITY OF COMPONENT INTERESTS; PROVISIONS FOR CERTAIN EASEMENTS AMID/OR ENCROACHMENTS; AND CONTAINING COVENANTS, COND3ITICNS AND RESTRICTIONS WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST IN GOOD FAITH AND FOR VALUE, RECORDED, AS INSSIROMEMT NO. 93- 0635859, OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSTRUMENT WHICH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. SAID INSTRUMENT MAY PROVIDE FOR LEVYING REGULAR AS WELL AS SPECIAL ASSESSMENTS. 19. A DEED OF TRUST TO SECURE AN INDEBTEDNESS. AMOUNT: $74,900.00 TRUSTOR: HECTOR C. RIVERA AND ITZIAR CUESTA-APARICIO, HUSBAND AND WIFE, AS JOINT TENANTS TRUSTEED: CALIFORNIA MORTGAGE SERVICE, A CALIFORNIA CORPORATION BENEFICIARY: CALIFORNIA MORTGAGE SERVICE, A CALIFORNIA, CORPORATION, D.B.A. COLONIAL BANCORP DATED: SEPTEMBER 1, 1994 RECORDED: SEPTIIMBER 9, 1994 AS INsmumENT N0. 94-551431, OF OFFICIAL RECORDS Cat ND. : 216705-3 PAGE IAA. : 6 20. A DEED OF TRUST TO SECURE AN INDEBTECNESSS. AMC I.]NI': $25,000.00 TRUSAOR: HE= C. R v?ERA, ITZIAR CUES -APARICIO TRUSTEE: THE CITY OF HUNTIl�6= BFACH, A MUNICIPAL CORPORATICN E92E FICIARY: THE REDEVEL OPME r AGENCY' OF THE CITY OF H=INIGIM BEACH DATED: SEPTEMBER 1, 1994 RECORDED: SEPTEMBER 9, 1994 AS IlVSIRUV= NO. 94-551432, OF OFFICIAL RECORDS CIMM ND. : 216705-3 • ALTA, LOAN POLICY PACE ND. : 7 SCHEDULE B PART II IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE, THE TITLE TO THE ESTATE OR INTEREST IN THE LAND DESCR= OR REFERRED TO IN SC HMME A IS SUBJECT TO THE F0LL0ffRr-. MATI'ER.S, IF ANY BE SH06V, BUT THE ClCMPANY INSURES THAT SUCH MATTERS ARE SUBORDINATE TO THE LIEN OR CMRGE OF THE INSURED MORTGME UPON ESTATE OR INTEREST: NONE • • Cat ND. 216705-3 PAC2 I IINIDORSEMMORT ATlACHm TO POLICY ED. M 183-507826 ISSUED BY NATIONS TITLE TNSn?ARCE CXOMMEANY THE CrVEANY HEREBY INSURES AG011ST LOSS ITICH SAID IlJSURED SHALL SUSTAIN BY REASON OF ANY OF THE FOLLOWING MATTERS: 1. ANY INCORRECTNESS IN THE ASSURANCE WHICH THE COMPANY HEREBY GIVES: (A) THAT THERE ARE NO COVENANTS, CONDITIONS, OR RESTRICTaXIS IMIDER WHICH THE LIEN OF THE MOB REFERRED 10 IN SCHEDULE A CAN BE CUT OFF, SUBORDINATED, OR OTHERWISE IMPAIRED; (B) THAT THEE ARE NO PRESENT VIOLATIONS ON' SAID LAND OF ANY ENFORCEABLE COVENANTS, CONDITIONS AND RESTRICTIONS. (C) THAT, EXCEPT AS SHOWN IN SCHEDULE B, THERE ARE NO ENCROACHMENTS OF BUILDINGS, STRUCTURES, aR IIMPROVEMMSENTS LOCATED CAI SAID LAND ONTO ADJOINING LANDS, NOR ANY ENCROACHMENTS LOCATED ON ALUOINING LANDS. 2. (A) ANY FUUT RE VIOLATIONS ON SAID LADED OF ANY COVENANTS, Ct"1NDITIONS, OR RESTRICTIONS O0aT RRTMq PRIOR TO AO�UISITIC N OF TITLE TO SAID ESTATE OR INTEREST BY THE INSURED, PROVIDED SUCH VIOLATIONS RESULT IN LOSS OR IMPAIRMU TT OF THE LIEN OF THE MORTGAGE REFERRED TO IN SCHEDULE A, OR RESULT IN LOSS OR IMPAIRMENT OF THE TITLE TO SAID ESTATE OR INTEREST IF THE INSURED SHALL ACQUIRE SUCH TITLE IN SATISFACTION OF THE INDEBTEDNESS SECURED BY SUCH MORDSKE; (B) UNMAR STABILITY OF THE TITLE TO SAID ESTATE OR INTEREST BY REASON OF ANY VIOLATIONS ON SAID LAND, OCCURRING PRIOR TO ACQUISITION OF TITTLE TO SAID ESTA,TR. OR INTEREST BY THE INSURED, OF ANY COVENANTS, CIONDITICNS, OR RESTRICTIONS. (100 ENDORSEMENT CONTINUED) PACE 1 100 • . tFUMZ NO. 216705-3 PAGE 2 100 IITIDCl?S MENT (C NTIlN®) 3. DAMAGE TO EXISTING IMPROVEMENTS, INCLUDING LAWNS, SHRUBBERY OR TREES (A) WHICH ARE LOCATED OR ENCROACH UPON THAT PORTION OF THE LAND SUBJECT TO ANY EASEMENT IN SCHEDULE B, WHICH DAMAGE RESULTS FROM THE EXERCISE OF THE RIGHT TO USE OR MAIl1MIN' SUCH EA; r FOR THE PURPOSE FOR WHICH THE SAME WAS ED OR RESERVED; (B) RESULTING FROM THE EXERCISE OF ANY RIGHT TO USE THE SURFACE OF SAID LAND FOR THE EXTRACTION OR DEVELOPMENT OF THE MINERALS EXCEPTED FROM THE DESCRIPTION OF SAID LAND OR AS A RESERVATION IN SCHEDULE B. 4. ANY FINAL COURT ORDER OR JLIDGEMENT RBUTMING RIIMOVAL, FROM ANY LAND ADJOINING SAID LAM OF ANY ENCROACT-IMENT SHOW IN SC EUM B. WHEREVER IN THIS INDORSEV NT ANY OR ALL THE WIORDS "COVENANTS, CONDITIONS OR RESTRICTIONS" APPEAR THEY SHALL NC7T BE DEEMED TO REFER TO OR INCLUDE THE TERMS COVENANTS AND COIDITIONS CONTAINED IN ANY LEASE REFERRED TO SCHEDULE A. THE TMAL LIABILITY OF THE COMPANY UNDER SAID POLICY AND ANY INDORSEMENTS THEREIN SHALL NOT EXCEED, IN THE ACMEGATE, THE FACE AMOUNT OF SAID POLICY AMID SAID POLICY AND OASIS MUCH THE =ANY IS OBLIGATE UNDER THE CONDITIONS AND STIPULATIONS THEREOF TO PAY. THIS E DORSE= IS MADE A PART OF SAID POLICY AND IS SUBJECT TO THE SCHEDCLES, CIONDITIONS AMID STIPULATIONS THEREIN, EXCEPT AS MiDDIFIED BY THE PROVISIONS HEREOF. NATIONS TITLE INSURANCE Cla PANY ' BY: aFFi PAGE 2 - 100 • • CREE2 ND. 216705-3 EMMSEMENT AT17MGlm TO k OLM I D. M 183-507826 ISSUED BY NATTCYNS THE ILA COMPANY THE COMPANY ASSURES THE INSURED TF3PiT AT THE DATE OF THIS POLICY THE DIDENSIONS OF THE E}CTERIOR BOLUDIARY OF THE LAND REFERRED TO IN SCHEDULE A OF THIS POLICY, WHICH IS ALSO THE EXTERIOR BaNDARY OF THE PROJECT, ARE CORRECTLY SHOWN ON THAT MAP SHOWN ON Sa=U E A OF SAID POLICY, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. THE COMPANY FURTHER ASSURES THE INS= THAT THE ESTATE IN SAID LAND REFERRED TO IN SCHEDULE A INCLUDES A RESEDERTIAL DMaLMU UNIT, WITHIN THE PRO= BOUIMARIES, AS DESCRIBED IN SCI= F A, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, AND IQ]CJf N AS 409 UrICA AVENUE A5, CITY OF HMnTN3XN HEAM, 0" U Y OF ORANOE, STATE OF CALIRTIA_ THE OCMPANY HEREBY INSURES THE INSURED AGAINST LOSS WHICH SAID INSURED SHALL SUSTAIN IN THE EVENT THAT THE ASSURANCE HEREIN SHALL PROVE TO BE INCORRECT. THE TOTAL LIABILITY OF THE COMPANY UMER SAID POLICY AND ANY INDORSEV= THEREIN SHALL NOT EX=), IN TEE AGGREGATE, THE FACE AMOUNT OF SAID POLICY AND COSTS WHICH THE Oa'lPANY IS OBLIGATED UNDER THE CONDITIONS AND STIPULATIONS THEREOF TO PAY. THIS ENDORSEN= IS MADE A PART OF SAID POLICY AND IS SUBJECT TO THE SCHEUM S, C aMITIONS AND STIPULATIONS THEREIN CONTAINED. MMONS TITLE INSURANCE CLr9PANY L � OFFICER 316.2 EMMEMENr NO. 216705-3 ENDC!RSEMENT ATTACHED TO PCILICY ND. M 183-507826 ISS® BY NATICNS TITLE INSURANCE CC14PANY THE INSURANCE AFFORDED BY THIS ENDORSEMENT IS CNLY EFFECTIVE IF THE LAIC? IS USED OR IS TO BE USED PRIMARILY FOR RESIDENTIAL PURPOSES. THE COMPANY INSURES THE INSURED AGAINST LOSS OR DAMAGE SUSTAINED BY REASON OF LACK OF PRIORITY OF THE LIEN OF THE INSURED MORTGAGE OVER: (a) ANY ENVIRONMENTAL PRC f=IC N LIEN MUCH, AT DATE OF POLICY IS RECORDED IN THOSE RECORDS ESTABLISHED UNDER STATE STATUTES AT DATE OF POLICY FOR THE PURPOSE OF IMPARTING CTRUCT'IVE NOTICE OF ]MATTERS RELATING TO REAL PROPERTY TO PURQ•F1SER5 FOR VALUE AND WITHOUT KNOK-IDG'E, OR FILED IN THE RECORDS OF THE CLERK OF THE UNITED STATES DISTRICT COURT IN WHICH THE LAND IS LOCATED, EXCEPT AS SET FORTH IN SCHEDULE B; OR (b) ANY ENVIRONNENIAL PROTECTTION LIEN PROVIDED FOR BY ANY STATE STATUTE IN EFFECT AT DATE OF POLICY, EXCEPT M71RONMENIAL PROTECF'ION LIENS PROVIDED FOR BY THE FCLIJDWING STATE STATU ES: NCNE THIS ENDORSEMENT IS MADE A PART OF THE POLICY AND IS SUBJECT TO ALL OF THE TERMS AND PROVISIONS THEREOF AMID ANY PRIOR ENDORSEMENTS THERETO. EXCEPT TO THE EXTENT F,XpMS.ST Y STATED, IT NEITHER MDDIFIES ANY OF THE TERMS AND PROVISIONS OF THE POLICY OR ANY PRIOR ENDORSEMENTS, NOR DOES IT EXTENT) THE EFFECTIVE DATE OF THE POLICY OR ANY PRIOR ENDORSEMENTS, NOR DOES IT INCREASE THE FACE A,MOFW TMZEOF. NATIONS TIT1L ]ICE COMPANY OFF CER 8.1 ENXlZSEMENr (ALTA) 110.9 ENDORSEMENTT (C LTA) .l o.jfCONDOMINIUM PLAN sheet B at J?a Sheets UNIT AIRSPACE DIMENSION PLAN:_ SCALE: I" c 16' # �} BUILDING "A" I tLOWER LEVELUSITS 1 THRU 11 r DJrTER)OR VALL LINE(7YP) I6 3i' M lcIuoD ZLraf-L' 4.9q'OflCO' ' t:J Ioo. a a r zDam d" _ s. 0. r r ,� -4 o UP I9 2 ry f 6 a 434 �' �t N U MM ��ll W Y7 V L b O v T 3 ` y.QO — 1. 3 ?,u C 1 a•- u0 {acco 1� = 1 0 !t Q5L' T19) T% IQ O ___ cutia:' QAw 7.1� l '� A �� ':•_; u asc• osi' asa' sc sc' c�sc- Qsc• 1rn] �' � uu ! 3 V C7 O U t7 O O OiaOQ w^M uum V �{.? �' au' dx• ��c• dx• a�• fry �� — t 'ExTMIoR VAU UKE(Tye) { Q ~L O � 7•P �oz C V„ c73 C p Y _ 3 L Gel NOTES: { I. INDICATES COPLMON BUILDING CONTROL PINT. 2. S££ SHEET 6 FOR BOUNDARY PLAT. 3. SEE SHEET 7 FOR BUILDING LOCA,TIOH PLAN. 4. SEE SHEETS 8 THRU 19 FOR UNIT AIRSPACE DIMENSION PLANS. W _ 5. SEE SHEETS 20 THRU 23 FOR SCHEDULES OF TY?ICAL UNIT VERTICAL SECTIONS- E. SEE SHEETS 24 THRU 27 FOR TYPICAL UNIT VERTICAL SECTIONS. 7. SEE SHEET 28 FOR OPEC. PARKING LODCATION PLAN. -�'- ALTA Loan Policy Form 1 I (10-17-92) -O S Q Policy of Title Insurance Issued By M 183-5 0 7 8 2 5 Nations Title insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B ANDTHE CONDITIONS AND STIPULATIONS,NATIONSTITLE INSURANCE COMPANY,a Kansas corporation,herein called the Company,insures,as of Date of Policy shown in Schedule A,against loss or damage,not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land; 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage; 7. Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material: (a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date of Policy; or (b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to Date of Policy and which is financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance; a Any assessments for street improvements under construction or completed at Date of Policy which now have gained or hereafter may gain priority over the insured mortgage; or 9. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A,or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs,attorneys'fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. Nations Title Insurance Company By: L,(i&,4 President Attest: 7 untersigned: //!'llr�/ By.:. . secretary Authorized Officer or Agent 1720 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and statutory lien for services,labor or material or the extent insurance is afforded the Company will not pay loss or damage,costs,attorneys'fees or expenses which herein as to assessments for street improvements under construction or com- arise by reason of: pleted at Date of Policy); or 1. (a) Any law,ordinance or governmental regulation(including but not limited to (e) resulting in loss or damage which vrould not have been sustained if the in- building and zoning laws,ordinances,or regulations)restricting.regulating, sured claimant had paid value for the insured mortgage. prohibiting or relating to(i)the occupancy, use, or enjoyment of the land; 4. Unenforceability of the lien of the insured mortgage because of the inability or (ii)the character,dimensions or location of any improvement now or hereafter failure of the insured at Date of Policy,or the inability or failure of any subsequent erected on the land;(iii)a separation in ownership or a change in the dimen- owner of the indebtedness,to comply with the applicable doing business laws sions or area of the land or any parcel of which the land is or was a part; of the state in which the land is situated. or(iv)environmental protection,or the effect of any violation of these laws. 5. Invalidity or unenforceability of the lien of the insured mortgage.or claim thereof, ordinances or governmental regulations, except to the extent that a notice which arises out of the transaction evidenced by the insured mortgage and is of the enforcement thereof or a notice of a defect,lien or encumbrance resulting based upon usury or any consumer credit protection or truth in lending law. from a violation or alleged violation affecting the land has been recorded in 6- Any statutory lien for services,labor or materials(or the claim of priority of any the public records at Date of Policy. statutory lien for services, labor or materials over the lien of the insured mort- (b) Any governmental police power not excluded by(a)above,except to the extent gage)arising from an improvement or work related to the land which is contracted that a notice of the exercise thereof or a notice of a defect. lien or encum- for and commenced subsequent to Date of Policy and is not financed in whole brance resulting from a violation or alleged violation affecting the land has or in part by proceeds of the indebtedness secured by the insured mortgage which been recorded in the public records at Date of Policy. at Date of Policy the insured has advanced or is obligated to advance. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded 7. Any claim,which arises out of the transaction creating the interest of the mortgagee in the public records at Date of Policy,but not excluding from coverage any taking insured by this policy, by reason of the operation of federal bankruptcy, state which has occurred prior to Date of Policy which would be binding on the rights insolvency, or similar creditors' rights lams, that is based on: of a purchaser for value without knowledge. (a) the transaction creating the interest of the insured mortgagee being deemed 3. Defects, liens. encumbrances. adverse claims or other matters: a fraudulent conveyance or fraudulent transfer:or (a) created. suffered. assumed or agreed to by the insured claimant; (b) the subordination of the interest of the insured mortgagee as a result of the (b) not known to the Company,not recorded in the public records at Date of Policy, application of the doctrine of equitable subordination; or but known to the insured claimant and not disclosed in writing to the Com- (c) the transaction creating the interest of the insured mortgagee being deemed pany by the insured claimant prior to the date the insured claimant became a preferential transfer except where the preferential transfer results from the an insured under this policy; failure: (c) resulting in no loss or damage to the insured claimant: (i) to timely record the instrument of transfer: or (d) attaching or created subsequent to Date of Policy(except to the extent that (ji) of such recordation to impart notice to a purchaser for value or a judge- this policy insures the priority of the lien of the insured mortgage over any ment or lien creditor. CONDITIONS AND STIPULATIONS 1, DEFINITION OF TERMS. contractual condition requiring the delivery of marketable title. or interest or the lien of the insured mongage.as insured,and The following terms when used in this policy mean: CONTINUATION OF INSURANCE which might cause loss or damage for which the Company may (a) " 2. . insured":the insured named in Schedule A.The term be liable by virtue of this pol;cy.or(iii)if title to the estate a --insured-'also includes (a) After Acquisition of Title.The coverage of this policy interest or the lien:of the insured mortgage.as insured.is re- (i) the owner of the indebtedness secured by the insured shall continue in force as of Date of Policy in favor of(i)an insured who acquires all or any part of the estate or interest in the land jetted as unmarketable.If prompt notice shall not be given to - mongage and each successor in ownership of the indebtedness by foreclosure.trustees sale,conveyance in lieu of foreclosure, the Company.then as t the insured all liability o the Com except a successor who is an obligor under the provisions of or other legal manner which discharges the lien of the insured pany shall terminate with regard to the matter matters for Section 12(c)o1 these Conditions and Stipulations(reserving, mortgage;(a)a transferee of the estate or interest So acquired which prompt petit is required;provided,however,that fai.ure however,all rights and defenses as to any successor that the from an insured corporation, provided the transferee is the to notify the Company shall in no case prejudice the rights of Company would have had against any predecessor insured, parent or wholly-a:•med subsidiary of the insured corporation, any insured under this policy unless the Company shall be pre- unless the successor acquired the indebtedness as a purchaser ludiced by the failure and then only to the extent of the prejud,ce. for value without knowledge of the asserted defect, lien, and their corporate successors by operation of law and not by encumbrance.adverse claim or other matter insured against Purchase.subject to any rights or defenses the Company may 4. DEFENSE AND PROSECUTION OF ACTIONS; enthis policy e.affecting titleto the estate or interest in the land); have against any predecessor insureds;and(iii)any govern- DUTY OF INSURED CLAIMANT To COOPERATE. by (ii) any governmental agency or governmental i ana);stru- mental agency or governmental instrumentality which acquires (a) Upon written request by the insured and subject to mentality which is governmental insurer or guarantor under an insurance all or any part of the estate o.°.nterest pursuant to a contract the options contained in Section 6 of these Conditions and m contract which is an insurersuring r guaranteeingguarantor underindebtednessinsurance of insurance or guaranty insuring or guaranteeing the in- Stipulations. the Company. at its own cost and without contract by the insured mortgage,or any part thereof,whether debtedness secured by the insured mortgage. unreasonable delay,shall provide for the defense of an insured named as an insured herein or not; (b) After Conveyance of Title.The coverage of this policy in litigation in whiclt any third party asserts a claim adverse (iii} the parties designated in Section 2(a) of these shall continue in force as of Date of Policy in favor of an in- to the title or interest as insured.but only as to those stated Conditions and Stipulations. sured only so long as the insured retains an estate or interest causes of action alleging a defect,lien or encumbrance or other p in the land.or holds an indebtedness secured by a purchase matter insured against by this policy.The Company shall have (b) 'ensured claimant": an insured claiming loss or money mortgage given by a purchaser from the insured,or the right to select counsel of its choice(subject to the right damage. only so long as the insured shall have liability by reason of of the insured to object for reasonable cause)to represent the (c) "knowledge' or "known": actual knowledge. not covenants of warranty made by the insured in any transfer or insured as to those stated causes of action and shall not be constructive knowledge or notice which maybe imputed to an conveyance of the estate or interest.This policy shall not con- liable for and will not pay the fees of any other counsel.The irsured by reason of the public records as defined in this policy tinue in force in favor of any purchaser from the insured of either Company will not pay any fees,costs or expenses incurred by or arty other records which impart constructive notice of matters affecting the!and. (i) an estate or interest in the land, or(ii) an indebtedness the insured in the defense of those causes of action which allege (d) "land":the!and described or referred to in Schedule secured by a purchase money mortgage given to the insured. matters not insured against by this policy. which bylaw constitute (c) Amount of Insurance:The amount of insurance after (b) The Company sha!I have the right,at its own Cost,to (A).and improvements affixed thereto real property_The term"land'does not clude any propene the acquisition or after the conveyance shall in neither event institute and prosecute any action or proceeding or to do any beyond the lines of the area described or referred to inn Schedule exceed the least of: other act which in its opinion may be necessary or desirable (A),nor any right,title.interest,estate or easement abutting (i) The amount of insurance stated in Scheoule A; to establish the title to the estate or interest or the lien of the streets.roads,avenues,alleys,lanes.ways or waterways,but (ii) The arnounl of the princ'pal of the indebtedness insured mortgage.as insured.or to prevent or reduce loss or nothing herein shall modify or limit the extent w which aright secured by the insured mortgage as of Date of Policy,interest damage to the insured.The Company may take any appropriate of access re and from the land is insured b this thereon.expenses of foreclosure,amounts advanced pursuant action under the terms of this policy.whether or not it shall y policy to the insured mortgage to assure compliance with!aws or to be liable hereunder.and shall not thereby concede liability or (e) "mortgage":mortgage.deed of trust.trust deed,or protect the►ten of the insured mortgage prior to the time of waive any provision of this policy. If the Company shall exer- other security instrument. acquisition of the estate or interest in the land and secured cise its rights under this paragraph,it shall do so diligently_ (f) '-public records": records established under state thereby and reasonable amounts expended to prevent deterio- (c) Whenever It a Company shall have brought an action statutes at Date of Policy for the purpose of imparting con- ration of improvements, but reduced by the amount of all or interposed a defense as required or permitted by the provi- structive notice of matters relating to real property to purchasers payments made;or stuns of this policy.the Company may pursue any litigation to for value and without knowledge-With respect to Section 1(a)(0 (iii) The amount paid by any governmental agency or final determination by a court of competent lurisdict;orr and of the Exclusions From Coverage. "public records'-shali also include environmental protection liens filed in the records of governmental instrumentality.if the agency or instrumentality expressly rose ves the right,in its sale discretion.to appeal the clerk of the United States district court for the district in is the insured claimant,in the acquis tion of the estate or interest from any adverse judgment or order. which the land U ited[St in satisfaction of its insurance can or guaranty. (d) 1n all cases where this policy permits or requires the (g) "unmarketability of the title":an alleged or apparent 3. NUrICE OF CLAIM iO BE GIVEN BY INSURED CLAIMANT Company to prosecute in provide for the defense of any ac- matter affecting the title to the land,not excluded or excepted The insured shall notify the Company promptly in writing(i) then or proceeding.the insured shall secure to the Company fro^t coverage.which would entitle a purchaser of the estate is case of any litigation as set forth in Section 4(a)below-(i:) the right to sod all appeals is provide defense it the action y or interest described in Schedule A or the insured mortgage in case knmv'.edge shall come to an insured hereunder of any proceeding,and all appeals therein,and permit the Company to be released from the obligation to purchase by virtue of a cl 20itle or interest which is adverse to the title to the estate to 9 its option.the name o•the insured for this purpose + (continued on inside back cover) 1720 "INDITIONS AND STIPULATIONS - (Continued from inside front cover) Whenever requested by the Company,the insured,at the Com- (i) to pay or otherwise settle with other parties for or in Section 2(a)of these Conditions and Stipulations shall not pany's expense,shall give the Company all reasonable aid(i) in the name of an insured claimant any claim insured against reduce pro tanto the amount of insurance afforded under this in any action or proceeding, securing evidence, obtaining under this policy,together with any costs,attorneys'fees and policy except to the extent that the payments reduce the amount witnesses,prosecuting or defending the action or proceeding, expenses incurred by the insured claimant which were authoriz- of the indebtedness secured by the insured mortgage. or effecting settlement,and(ii)in any other lawful act which ed by the Company up to the time of payment and which the (b) Payment in part by any person of the principal of the in the opinion of the Company may be necessary or desirable Company is obligated to pay; or indebtedness,or any other obligation secured by the insured to establish the title to the estate or interest or the lien of the (ii) to pay or otherwise settle with the insured claimant mortgage,or any voluntary partial satisfaction or release of the insured mortgage,as insured. If the Company is prejudiced the loss or damage provided for under this policy,together with insured mortgage,to the extent of the payment,satisfaction. by the failure of the insured to furnish the required coopera- any costs,attorneys'fees and expenses incurred by the insured or release,shall reduce the amount of insurance pro tanto.The tion,the Company's obligations to the insured under the policy claimant which were authorized by the Company up to the time amount of insurance may thereafter be increased by accruing shall terminate,including any liability or obligation to defend, of payment and which the Company is obligated to pay. interest and advances made to protect the lien of the insured prosecute,or continue any litigation,with regard to the mat- Upon the exercise by the Company of either of the options mortgage and secured thereby,with interest thereon,provided ter or matters requiring such cooperation. provided for in paragraphs b(i)or(ii),the Company's obligations in no event shall the amount of insurance be greater than the to the insured under this policy for the claimed loss or damage, amount of insurance stated in Schedule A. 5. PROOF OF LOSS OR DAMAGE. other than the payments required to be made,shall terminate (c) Payment in full by any person or the voluntary satisfac- In addition to and after the notices required under Section including any liability or obligation to defend, prosecute or tion or release of the insured mortgage shall terminate all liability 3 of these Conditions and Stipulations have been provided the continue any litigation. of the Company except as provided in Section 2(a)of these Company,a proof of loss or damage signed and sworn to by Conditions and Stipulations. the insured claimant shall be furnished to the Company within 7. DETERMINATION AND EXTENT OF LIABILITY. 90 days after the insured claimant shall ascertain the facts giving This policy is a contract of indemnity against actual monetary 10. LIABILITY NONCUMULATIVE. rise to the loss or damage.The proof of loss or damage shall loss or damage sustained or incurred by the insured claimant If the insured acquires title to the estate or interest in satisfac- describe the defect in,or lien or encumbrance on the title,or who has suffered loss or damage by reason of matters insured tion of the indebtedness secured by the insured mortgage,or other matter insured against by this policy which constitutes against by this policy and only to the extent herein described. any part thereof, it is expressly understood that the amount the basis of loss or damage and shall state, to the extent (a) The liability of the Company under this policy shall not of insurance under this policy shall be reduced by any amount possible, the basis of calculating the amount of the loss or exceed the least of: the Company may pay under any policy insuring a mortgage damage.If the Company is prejudiced by the failure of the in- (i) the amount of insurance stated in Schedule A,or, to which exception is taken in Schedule B or to which the insured sured claimant to provide the required proof of loss or damage, if applicable,the amount of insurance as defined in Section has agreed,assumed,or taken subject,or which is hereafter the Company's obligations to the insured underthe policy shall 2(c)of these Conditions and Stipulations; executed by an insured and which is a charge or lien on the terminate,including any liability or obligation to defend,pro- (ii) the amount of the unpaid principal indebtedness estate or interest described or referred to in Schedule A,and secute,or continue any litigation,with regard to the matter or secured by the insured mortgage as limited or provided under the amount so paid shall be deemed a payment underthis policy. matters requiring such proof of loss or damage. Section 8 of these Conditions and Stipulations or as reduced In addition,the insured claimant may reasonably be required under Section 9 of these Conditions and Stipulations,at the 11. PAYMENT OF LOSS. to submit to examination under oath by any authorized represen- time the loss or damage insured against by this policy occurs, (a) No payment shall be made without producing this tative of the Company and shall produce for examination, together with interest thereon; or policy for endorsement of the payment unless the policy has inspection and copying,at such reasonable times and places (iii) the difference between the value of the insured estate been lost or destroyed,in which case proof of loss or destruc- as may be designated by any authorized representative of the or interest as insured and the value of the insured estate or tion shall be furnished to the satisfaction of the Company. Company,all records,books,ledgers,checks,correspondence interest subject to the defect, lien or encumbrance insured (b) When liability and the extent of loss or damage has and memoranda,whether bearing a date before or after Date against by this policy. been definitely fixed in accordance with these Conditions and of Policy, which reasonably pertain to the loss or damage. (b) In the event the insured has acquired the estate or Stipulations,the loss or damage shall be payable within 30 days Further, if requested by any authorized representative of the interest in the manner described in Section 2(a) of these thereafter. Company,the insured claimant shall grant its permission,in Conditions and Stipulations or has conveyed the title,then the writing,for any authorized representative of the Company to liability of the Company shall continue as set forth in Section 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. examine,inspect and copy all records,books,ledgers,checks, 7(a)of these Conditions and Stipulations. (a) The Company's Right of Subrogation.Whenever the correspondence and memoranda in the custody or control of (c) The Company will pay only those costs,attorneys'fees Company shall have settled and paid a claim under this policy, a third party,which reasonably pertain to the loss or damage. and expenses incurred in accordance with Section 4 of these all right of subrogation shall vest in the Company unaffected All information designated as confidential by the insured clai- Conditions and Stipulations. by any act of the insured claimant. mant provided to the Company pursuant to this Section shall The Company shall be subrogated to and be entitled to all not be disclosed to others unless,in the reasonable judgment 8. LIMITATION OF LIABILITY. rights and remedies which the insured claimant would have had of the Company, it is necessary in the administration of the (a) If the Company establishes the title,or removes the against any person or property in respect to the claim had this claim.Failure of the insured claimant to submit for examina- alleged defect,lien or encumbrance,or cures the lack of a right policy not been issued.If requested by the Company,the insured tion under oath,produce other reasonably requested information of access to or from the land,or cures the claim of unmarket- claimant shall transfer to the Company all rights and remedies or grant permission to secure reasonably necessary informa- ability of title,or otherwise establishes the lien of the insured against any person or property necessary in order to perfect tion from third parties as required in this paragraph,unless pro- mortgage,all as insured,in a reasonably diligent manner by this right of subrogation.The insured claimant shall permit the hibited by law or governmental regulation,shall terminate any any method, including litigation and the completion of any Company to sue,compromise or settle in the name of the insured liability of the Company under this policy as to that claim. appeals therefrom,it shall have fully performed its obligations claimant and to use the name of the insured claimant in any trans- with respect to that matter and shall not be liable for any loss action or litigation involving these rights or remedies. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; or damage caused thereby. If a payment on account of a claim does not fully cover the TERMINATION OF LIABILITY. (b) In the event of any litigation,including litigation by the loss of the insured claimant,the Company shall be subrogated In case of a claim under this policy,the Company shall have Company or with the Company's consent,the Company shall to all rights and remedies of the insured claimant after the insured the following options: have no liability for loss or damage until there has been a final claimant shall have recovered its principal, interest,and costs (a) To Pay or Tender Payment of the Amount of Insurance determination by a court of competent jurisdiction,and disposi- of collection. or to Purchase the Indebtedness. tion of all appeals therefrom,adverse to the title or to the lien (b) The Insured's Rights and Limitations. (i) to pay or tender payment of the amount of insurance of the insured mortgage,as insured. Notwithstanding the foregoing,the owner of the indebtedness under this policy together with any costs,attorneys'fees and (c) The Company shall not be liable for loss or damage secured by the insured mortgage,provided the priority of the expenses incurred by the insured claimant,which were author- to any insured for liability voluntarily assumed by the insured lien of the insured mortgage or its enforceability is not affected, ized by the Company,up to the time of payment or tender of in settling any claim or suit without the prior written consent may release or substitute the personal liability of any debtor payment and which the Company is obligated to pay;or of the Company. or guarantor,or extend or otherwise modify the terms of pay- (ii) to purchase the indebtedness secured by the insured (d) The Company shall not be liable for: ment,or release a portion of the estate or interest from the mortgage for the amount owing thereon together with any costs, (i) any indebtedness created subsequent to Date of lien of the insured mortgage,or release any collateral security attorneys'fees and expenses incurred bythe insured claimant Policy except for advances made to protect the lien of the in- for the indebtedness. which were authorized by the Company up to the time of pur- sured mortgage and secured thereby and reasonable amounts When the permitted acts of the insured claimant occur and chase and which the Company is obligated to pay. expended to prevent deterioration of improvements; or the insured has knowledge of any claim of title or interest adverse If the Company offers to purchase the indebtedness as herein (ii) construction loan advances made subsequent to to the title to the estate or interest or the priority or enforceability provided,the owner of the indebtedness shall transfer,assign, Date of Policy,except construction loan advances made subse- of the lien of the insured mortgage,as insured,the Company and convey the indebtedness and the insured mortgage, quent to Date of Policy for the purpose of financing in whole shall be required to pay only that part of any losses insured together with any collateral security,to the Company upon pay- or in part the construction of an improvement to the land which against by this policy which shall exceed the amount, if any, ment therefor. at Date of Policy were secured by the insured mortgage and lost to the Company by reason of the impairment by the insured Upon the exercise by the Company of either of the options which the insured was and continued to be obligated to ad- claimant of the Company's right of subrogation. provided for in paragraphs a(i)or(ii), all liability and obliga- vance at and after Date of Policy. (c) The Company's Rights Against Non-Insured Obligors. tions to the insured under this policy,other than to make the The Company's right of subrogation against non-insured payment required in those paragraphs,shall terminate,including 9. REDUCTION OF INSURANCE; obligors shall exist and shall include, without limitation,the any liability or obligation to defend,prosecute,or continue any REDUCTION OR TERMINATION OF LIABILITY. rights of the insured to indemnities,guaranties,other policies litigation,and the policy shall be surrendered to the Company (a) All payments under this policy,except payments made of insurance or bonds,notwithstanding any terms or conditions for cancellation. for costs,attorneys'fees and expenses,shall reduce the amount contained in those instruments which provide for subrogation (b) To Pay or Otherwise Settle With Parties Other than the of the insurance pro tanto.However,any payments made prior rights by reason of this policy. The Company's right of sub- Insured or With the Insured Claimant. to the acquisition of title to the estate or interest as provided rogation shall not be avoided by acquisition of the insured (continued on back cover) 1720 CONDITIONS AND STIPULATION (Continued from inside back aver) mortgage by an obligor(except an obligor described in Section the Rules in effect on the date the demand for arbitration is made covered hereby or by any action asserting such claim,shall be 1(a)(ii)of these Conditions and Stipulations)who acquires the or,at the option of the insured,the Rules in effect at Date of restricted to this policy. insured mortgage as a result of an indemnity,guarantee,other Policy shall be binding upon the parties.The award may include (c) No amendment of or endorsement to this policy can policy of insurance,or bond and the obligor will not be an insured attorneys'fees only if the laws of the state in which the land is be made except by a writing endorsed hereon or attached hereto under this policy, notwithstanding Section 1(a)(i) of these located permit a court to award attorneys'fees to a prevailing signed by either the President,a Vice President,the Secretary, Conditions and Stipulations. party.Judgment upon the award rendered by the Arbitrator(s) an Assistant Secretary,or validating officer or authorized signatory may be entered in any court having jurisdiction thereof. of the Company. 13. ARBITRATION. The law of the situs of the land shall apply to an arbitration Unless prohibited by applicable law, either the Company under the Title Insurance Arbitration Rules. 15. SEVERABILITY. or the insured may demand arbitration pursuant to the Title A copy of the Rules may be obtained from the Company upon In the event any provision of this policy is held invalid or unen- Insurance Arbitration Rules of the American Arbitration Asso- request. forceable under applicable law,the policy shall be deemed not ciation.Arbitrable matters may include,but are not limited to, to include that provision and all other provisions shall remain any controversy or claim between the Company and the insured 14. LIABILITY LIMITED TO THIS POLICY; in full force and effect. arising out of or relating to this policy,any service of the Com- POLICY ENTIRE CONTRACT. pany in connection with its issuance or the breach of a policy (a) This policy together with all endorsements, if any, 16. NOTICES,WHERE SENT. provision or other obligation. All arbitrable matters when the attached hereto by the Company is the entire policy and con- All notices,required to be given the Company and any state- Amount of Insurance is$1,000,000 or less shall be arbitrated tract between the insured and the Company.In interpreting any ment in writing required to be furnished the Company shall include at the option of either the Company or the insured.All arbitrable provision of this policy,this policy shall be construed as a whole. the number of this policy and shall be addressed to the Com- matters when the Amount of Insurance is in excess of$1,000,000 (b) Any claim of loss or damage, whether or not based pany at 6800 College Blvd.,Suite 700,Overland Park, Kansas shall be arbitrated only when agreed to by both the Company on negligence, and which arises out of the status of the lien 66211. and the insured.Arbitration pursuant to this policy and under of the insured mortgage or of the title to the estate or interest Policy of Title Insurance Issued By Nations Title Insurance Company 6800 College Blvd./Suite 700/Overland Park, Kansas 66211 913-491-5585 1720 ALTA LOAN POLICY • • SCHEDLn ' A TOTAL FEE FOR TITLE, EYAMDaTION AND TITLE =73RANCE $300.00 AMO= OF INSURANCE: $25,000.00 LOAN NO. RIVEWAPARICIO ORDER NO. 216705-3 POLICY NO. M 183-507825 DATE OF POLICY: SEPTII+BER 9, 1994 AT: 3:59 P.M. 1. NAME OF INSURED: THE REDEVELDPMENT AGENCY OF THE CITY OF HUNrINC0N BEACH, A PUBLIC BODY CORPORATE AMID POLITIC 2. THE ESTATE OR INTEREST IN THE LAND DESCRIBED IN SCHEDULE A AND WHICH IS COVERED BY THIS POLICY IS: A 0010CM]NIUM AS DEFINED IN SECTICN 783 OF THE CALIFORNIA CIVIL CODE, IN FEE. 3. THE ESTATE OR IPITEREST REFERRED TO HEREIN, IS AT DATE OF POLICY VESTED IN: HECTOR C. RIVERA AND ITZIAR CUES-IA-APARICIO, HUSBAND AND WIFE, AS JOINT TENANTS 4. THE MORTGAGE, HEREIN REFERRED TO AS THE INSURED MORTGAGE, AND THE ASSIa&lENTS THERmF, IF ANY, ARE DESCRIBED AS FOLDOWS: A DEED OF TRUST TO SECURE AN INDEBTEENFSS. AMOUNT: $25,000.00 TRUSTOR: HE=R C. RIVERA, ITZIAR CUESTA-APARICIO TRUSTEE: TBE CITY OF HlfflTNGION BEACH, A MUNICIPAL CORPORATION BENEFICIARY: THE REDEVELOPMENT AGENCY OF THE CITY OF HURFIDMON BEACH DATED: SEPTIIMBM 1, 1994 RECORDED: SEPTEMBER 9, 1994 AS INSTRUMENT NO. 94-551432, OF OFFICIAL RECORDS CEDER M. : 216705-3 • • PACE ND. . 2 SQHE= A (CONTINUED) S. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS: THE LAND IS SITUATED IN THE STATE OF CALIFORNIA OOUDTIY OF ORANGE PARCEL 1: UNIT NO. 5, CONSISTING OF CERTAIN AIRSPACE AND SURFACE E 4E TS, AS SHC7WN AND DESCRIBED IN THE cacti lINIUM PLAN (,,PLAN,,) FOR BR.ISAS DEL MAR LOCATED CN LOT 1 OF TRACT 14757, AS SHOWN CN A SUBDIVISION MAP REQORDED ON SEPTE BER 1, 1993, IN BOOK 701, PAGES 42 THROUGH 43, INCLUSIVE OF MUSC ILANFOUS MAPS, IN THE OFFICE OF THE ORANGE C UNIY RECORDER ("OFFICIAL RECORDS") , WHICH PLAN WAS RECORDED ON SEPTEMBER 15, 1993, AS TNSTRUVENL' NO. 93-0621742, OF OFFICIAL RECORDS, CALIFCRNIA. PARCEL 2: AN UNDIVIDED CIE FORTY-FUIRTH (1/44) FEE SIMPLE uqrEREsT AS A TENANT IN V IN AND TO MODULE B SH WN ON THE PLAN AND DEFINED IN THE DECLARATION REFERRED '10 BELOW AS THE ,Ca AREA". EXCEPT THMR FP N( ALL, OIL, GAS, MINERALS AND OTHER HYDROMRBON SUBSTANC ES LYING BELOW A DEPTH OF 500 FEET WITM TT ANY RIGHT TO ENTER UPON THE SURFACE OR THE SUBSURFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INSTRLD/ElTI'S OF RECORD. PARCEL 3: INCLUSIVE EASE ENTS FOR ACCESS, INGRESS, EGP=, USE, ENJOYMENT, DRAUQM, , SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL AS MAY BE SHOWN IN THE PLAN, AND AS ARE DESQU= IN THE DF)a ARATIC N. PARCEL 4: EXCLUSIVE FA-c04EV S APPIRTE WT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR USE FOR PARKM PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECTLARATION, OVER PORTICNS OF LOT 1 OF TRACT 14757 SHONN AND ASSIGNEED IN THE PLAN. PARCEL 5: AN EXCLUSIVE EASEMENT APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE, FOR USE FOR PATIO, BAI,CCVY, AND FIRE ESQ%PE STAIRCP,SE PURPOSES DESQZIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT 1 OF TRACT 14757 AS SlUM, ASSIGNED AND DESCRIBED IN THE PLAN. Cff�3Z BA. : 216705-3 OLTA LOAN POLICY PACE: IAA. : 3 SCHEDULE B PART I THIS POLICY DOES ISM INSURE AGAINST LOSS OR DAMAGE (AND 'THE COMPANY WILL NC7T PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: A. GENERAL AND SPECIAL TAXES, A LIEN NOT YET PAYABLE, FOR THE FISCAL YEAR 1994- 1995. B. THE LIEN OF SUPPLEMENr!'AL TAXES, IF ANY, ASSESSED PURSUANT TO CHAPTER 3.5 C01AMEIVCING WITH SECTICNV 75 OF THE CALIFORNIA REVENUE AMID TAXATIC N CODE. 1. THE EFFECT OF A COMMUNITY OIL AND GAS LEASE EXEC MM BY LOUIS BENSON AND ELOISE B. BENSON, HIS WIFE AND BY OTHER PERSONS AS TO OTHER LAND, AS LESSORS, AND BY COLUMBIA LEASING AND DEVELOPING COMPANY, A CORPORATION, AS LESSEE, RECORDED NOVIIMBER 6, 1920 IN BOOK 16, PAGE 198 AND RE-RECORDED AUSUST 11, 1921 IN BOOK 25, PAGE 247 OF LEASES, BOTH OF LEASES, TO WHICH RECORD REFERENCE IS MADE FOR FULL PARTICULARS. 2. AN EASIIYJENt FOR PIPE LINES AND INCIDENTAL PURPOSES, AS GW= TO HUNTIINBi BEACH COMPANY IN THE DEED RECORDED IN BOOK 319, PAGE 149 OF DEEDS, OF OFFICIAL RECORDS, AMONG `THAT PORTIC N OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRLMEMTi'. 3. COVaWF TS, CONDITIONS AND RESIRICTIONS IN AN INST�NT RECORDED IN BOOK 319, PAGE 149 OF DEEDS, OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSIRII= WHICH PROVIDE RES"IRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DEL=. 4. AN EASRV ENT FOR PIPE, POLE LINES AND INC]--DW L, PURPOSES, AS GRANTED TO PETROLEUM MIUW COMPANY, LTD. , IN THE DEED RECORDED IN BOOK 578, PAGE 269 OF DEEDS, OF OFFICIAL RECORDS, ALOM THAT PORTION OF SAID LADED AS MORE PARTICULARLY DESCRIBED IN SAID INSIRLZEN!'. 5. AN EASEME2U FOR PIPE LINE AND INCIDMITAL, PURPOSES, AS GRANTED TO STANDARD OIL COMPANY OF CALIFORNIA IN THE DEED RECORDED IN BOOK 865, PAGE 15 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSIRIZEM. 6. AN EASEMENT FOR PIPE LINES AND INCIDENTAL PURPOSES, AS CRM= TO SIAANDARD OIL COMPANY OF CALIFORNIA AND STANDARD GASOLINE COMPANY, IN THE DEED RECORDED IN BOOK 3577, PAGE 119 OF OFFICIAL RECORDS, ALIJNG THAT P'ORTIC N OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INS1RLWE T!'. 7. AN EASE TT FOR PIPE LINES AND INCIDENTAL PURPOSES, AS GRANIHD TO THE TEXAS COMPANY, A CORPORATION, IN THE DEED RECORDED IN BOOK 3660, PAGE 257 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTR]MENT. 8. AN EASEMENT FOR PUBLIC UTILITIES AMID INCIDENTAL PURPOSES, AS CRANIHD TO THE GENERAL 'L`F'L F'PME COMPANY OF CALIFUM IA, A CORPORATION, IN DEED RECORDED AS INSTRUMIWF NO. 87-440298 OF OFFICIAL RECORDS, AID THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRLM U. S 1 DEED PFOVIDES THAT NO BUILDING OR STRUCTURE SHALL BE PLACED OR VAINTA= ON SAID EASEMENT. CIREM NO. : 216705-3 • . PACE NO. : 4 9. THE TERMS, PROVISIONS AND CONDITIONS O2?I'A= IN A DCX;SZMTT ENTITLED "AFFORDABLE HOUSING RESTRICTICN AND COVENANT", E=JIED BY AND BETWEEN BEAC TT LAKE STREET PROPERTIES AND THE CITY OF HU UnUIl N BEACH, RECORDED SEPTE BER 2, 1987 AS INSTRLHMFATT NO. 87-500026 OF OFFICIAL RECORDS. 10. AN EASEMENT FOR PUBLIC UTILITIES AND INCIDENTAL PURPOSES, AS (RANTED TO SOUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION, IN DEED RECORDED AS INSTRUY]ENT NO. 87-534842 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAMED AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 11. AN EASEMENT FOR WATER MAN AND INCIDRQ T'AT, RJRPOSES, AS CRI IS= TO THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION IN THE DEED RECORDED AS INSTRUMENT NO. 87-583411 OF OFFICIAL RECORDS, ALA THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUPE TT. 12. THE EFFECT OF A SUBSURFACE OIL AMID CAS LEASE, EXEGZJIED BY GILBERT M. WILSON AND ELEANOR E. WILSON, HUSBAND AND WIFE, AS LESSOR, AND AIMS PETROLEUM CORPORATION, A DELAWARE CORPORATION, AS LESSEE, RECORDED APRIL 18, 1989 AS INSTRUMENT NO. 89-201848 OF OFFICIAL RECORDS, CNERING THE LAND LYING BELOW A DEPTH OF FIVE H[RIDRED (500) FEET FROM THE SURFACE THEREOF, WITHOUT THE RIGHT OF SURFACE ENTRY ABOVE SAID DEPTH, FCR THE PERIOD AND UPON THE TERMS, COVENANTS AND CONDITIONS THEREIN PROVIDED, REFERENCE BEING MADE TO THE RECORD THEREOF FOR FULL PARTICULARS. 13. THE TERMS, PROVISIONS AND O3NDTTIONS COINED IN A DOCL]ME TT ENTITLED "DECLARATIC N OF RESTRICTIONS AND SUBDIVISION CONSENTS", EXECTJT D BY DELANA,RE II, A CALIFORNIA LIMITED PARTNERSHIP, RECORDED APRIL 6, 1993 AS INSTRUMENT NO. 93-0230267 OF OFFICIAL RECORDS. 14. THE FACT THAT THE OWNERS OF SAID LAND HAVE NO RIGHT OF VEHICULAR ACCESS TO DELAWARE STREET, UTIC A AVENUE AMID CALIFORNIA. STREET, EXCEPT AT SPECIFIED POINTS, SAID RIGM HAVING BEEN RELn JISHED BY DEDICATION PRC7VISIC NS ON THE MAP OF SAID TRACT. 15. AN INSTRUMENT ENTITLED "CONDOMINIUM PLAN" RECORDED SEPTEMBER 15, 1993 AS INSTRUMENT NO. 93-0621742 OF OFFICIAL RECORDS; REFERENCE BEING MADE TO THE RECORD THEREOF FOR FULL PARTICULARS. CITM ND. : 216705-3 • . PACE NO. : 5 16. MATTERS IN AN INSTRU4= WHICH AKDNG, OWNER THINGS CONTAIN OR MAKE PROVISIONS FOR AMID LIENS AND THE SUBORDINATION THEZZEOF; PROVISIONS RELATING TO PARTITION; RE=CTIONS ON SEVERABILITY OF COMP(l !' INTERESTS; PROVISIONS FOR CERTAIN EASEMENTS AND/OR AND OaTTAINING COVEV*nS, CONDITIONS AMID RFSIRICI'IONS WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST IN GOOD FAITH AMID FOR VALUE, RECORDED, AS INSTM]MENT NO. 93-0625045 OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSIRUvZN ' WHICH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. SAID INSTRTETT MAY PROVIDE FOR LEVYIM REGULAR AS WELL AS SPECIAL NOTWITHSTANDING THE MORTGAGEE PROTECTION CLAUSE CONTAINED IN THE ABOVE MENTIONFI} COVENANTS, CONDITIONS AND RESTRICTIONS, THEY PROVIDE THAT THE LIENS AND CHARGES FOR UPKEEP AND MAINTENANCE ARE SUBORDINATE ONLY TO A FIRST MORTGAGE. AN INSTRUMENT DECLARING A MODIFICATION OF SAID COVENANTS, CONDITIONS AMID RESTRICTIONS WAS RECORDED, AS INSIRLAV!ENT NO. 93-0680846, OF OFFICIAL RECL7RDS. 17. EASEMENTS FOR INGRESS AND EGRESS, PARKING, PIPELINE, DRAINAGE, SANITARY SEWERS, PUBLIC UTILITIES, SLOPES AND RIGHTS INCIDENTAL TFiEREAO, AS DISCLOSED BY INSTRUMENTS OF RECORD AMID THE MAP OF SAID TRACT, AFFECTING ONLY THE Ca4vM AREA. 18. MATTERS IN AN INSTRLlARU WHICH AMONG 0= THINGS CCNTAIN OR MAKE PR0VISIONS FOR ASSESSMENTS AMID LIENS AND THE SUBORDINATICN THEREOF; PROVISIONS RELATING TO PARTITION; RESTRICTICNS ON SEVERABILITY OF Camr INTERESTS; PROVISIONS FOR CERTAIN EASEMENTS AND/OR EN ; AND CONTAINING CJVEMgIS, CONDITICNNS AND RESTRICTIONS WHICH PROVIDE THAT A VIOLATION THEREFF SHALT, NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORICE OR DEED OF TRUST IN GOOD FAITH AND FOR VALUE, RECORDED, AS INSTRLIMWr NO. 93- 06358591 OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSIRREZU WHICH PROVIDE RESTRICTIONS BASED CAN RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. SAID INSTRLTIENT!' MAY PROVIDE F1OR LEVYING RECRJLAR AS WELL AS SPECIAL 19. A DEED OF TRUST TO SECURE AN INIDEBTE�.SS. AMCXM: $74,900.00 TRUS OR: BID= C. RIVERA AMID ITZIAR CUESTA-APARICIO, HUSBAND AND WIFE, AS JOINT TE[ZNIS TRUSTEE: CALIFORNIA MORTGAGE SERVICE, A CALIFORNIA CORPORATICN BENEFICIARY: CALIFORNIA MORTGAGE SERVICE, A CALIFORNIA CORPORATION, D.B.A. COLONIAL BANC?ORP DATED: SF'P'1'FiyBER 1, 1994 RECORDED: SEP E BER, 9, 1994 AS II3SI!RUMEN ' NO. 94-551431, OF OFFICIAL RECORDS CAL NO- : 21005-3 • LTA LOAN POLICY PAGE NO. : 7 SCHEDULE B PART II IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE, THE TITLE TO THE ESTATE OR INTEREST IN THE LAND DESCRIBED OR REFERRED TO IN SCHEDULE A IS SUBJECT TO THE FOLD MATTERS, IF ANY BE SHCltn BUT THE ClIUANY INSURES 'THAT SUCH MATTERS ARE SUBORDINATE TO THE LIEN OR CHARGE OF THE INSURED MORTGAGE UPON ESTATE OR INTEREST: 1. A DEED OF TRUST TO SECURE AN INDEBTEDNESS. AMOUNT: $5,000.00 TRUSIOR: HECTOR C. RIVERA AMID ITZIAR CUESTA-APARICIO, HUSBAND AND WIFE, AS JOINT TENANTS TRUSTEE: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINIS ON BEACH, A PUBLIC BODY CORPORATE AND POLITIC BENNEFICIARY: THE CITY OF HUNTIIVC;`PIN BEACH, A MUNICIPAL CORPORATION DATED- SEP EMBER 1, 1994 RECORDED: SEPTE MBER 9, 1994 AS INSTRUMENT NO. 94-55143 3, OF OFFICIAL RECORDS iNO. 216705-3 PACE 1 END0RS8 WRWr ATTACHED TD PRICY IAA. M 183-507825 ISSUED BY NAaams TITLE INSURANCE 0CMPAN Y THE MANY HEREBY INSURES AGAINST LOSS WHICH SAID INSURED SHALL SUSTAIN BY REAS09 OF ANY OF THE FOLLOWING MATTERS: 1. ANY INCORRECTNESS MESS IN THE ASSURANCE WHICH THE COMPANY HEREBY GIVES: (A) THAT THERE ARE NO COVENANT'S, CONDITIONS,DITIONS, OR RESTRICTIONS UDIDER WHICH THE LIEN OF THE MORTGAGE REFERRED TO IN SCHEDULE A CAN BE CUT OFF, SUBORDINATED, OR OTHERWISE IMPAIRED; (B) THAT THERE ARE NO PRFSEar VIOLATIONS CST SAID LAND OF ANY ENFORCEABLE COVENANTS, CONDITIONS AND RESTRICTIONS. (C) THAT, EXCEPT AS SHOWN IN SCHEG'�i�� B, THERE ARE NO ENCROACHMENTS OF BUILDINSS, STRUCTURES, OR IMPRDVISIMMONTM LOCATED ON SAID LAND ONTO ADTOINTNG LANDS, NOR ANY ENCROACHMENTS LOCATED CAI ADJOINING LANDS. 2. (A) ANY FUTURE VIOLATIONS CN SAID LAND OF ANY CJVENAN S, CONDITIONS, OR RESTRICTIONS OCCURRING PRIOR TO ACQUISITION OF TITLE TO SAID ESTATE OR INTEREST BY THE INSURED, PROVIDED SUCH VIOLATIONS RESULT IN LC?SS OR IMPAIRMENT OF THE LIEN OF THE MORTGAGE REFERRED TO IN SCHEDULE A, OR RESULT IN LASS OR IMPAIRMlMiT OF THE TITLE TO SAID ESTATE OR 1NIERFST IF THE INSURED SHALL ACQUIRE SUCH TITLE IN SATISFACTIor OF THE INDEBTEDNESS SECURED BY SUCH MORTGAGE; (B) LNMARKETABILITY OF THE TITLE TO SAID ESTATE OR INTEREST BY REASON OF ANY VIOLAT ONS ON SAID LAND, OCCURRING PRIOR TO ACQUISITI09 OF TITLE TO SAID ESTATE OR INTEREST BY THE INSURED, OF ANY COVENANTS, CONDITIONS, OR RESTRICTIONS. (100 ENDORSEMENT CONTINUED) PACE 1 - 100 ENDORSEMENT . IAA. 216705-3 PAGE 2 100 ENEORSHMENr (awynnumv 3. DAMAGE TO EXISTING IMPROVEMENTS, INCLUDING LAWNS, SHRUBBERY OR TREES (A) WHICH ARE L a= OR woopm UPCm THAT PORTION OF THE LAND SUBJECT TO ANY EASEMENT IN SCHEDULE B, WHICH DAMAGE RESULTS FROM THE EXERCISE OF THE RIGHT TO USE OR MAINTAIN SUCH EASEMENT FUR THE PURPOSE FOR WHICH THE SAME WAS (RANTED OR RESERVED; (B) RESULTING FROM THE EXERCISE OF ANY RIGEIT TO USE THE SURFACE OF SAID LAND FOR THE EXTRACTION OR DEVELOPMENT OF THE NfINMERALS EXCEPI=D FROM THE DESCRIPTION OF SAID LAND OR SHOWN AS A RESERVATION IN SCHEDULE B. 4. ANY =9AL COURT ORDER OR JUDGE ENT ROW1 IRTNNG REMOVAL FROM ANY LAND ADJOINING SAID LAND OF ANY ENCROACHMENT SHOWN IN SCHEDULE B. WHEREVER IlN THIS INDORSEMENT ANY OR ALL THE WORDS "CCVENANT'S, CONDITIONS OR RESTRICTIONS" APPEAR THEY SHAD NX BE DEEMED T1O REFER TO OR INCLUDE THE TERMS COVENANTS AND CONDITIONS CONENINID IN ANY LEASE REFERRED TO SCHEDULE A. THE TC7TAL LIABILITY OF THE COMPANY UNDER SAID POLICY AND ANY IND RSEMEDTIS THEREIN SHALL NOT Z=D, IN THE ACGRESXTE, THE FACE AMODUTT OF SAID POLICY AND SAID POLICY AND COSTS WHICH THE CGMPANY IS OBLIGATED UNDER THE CONDITIONS AND STIPULATIONS THEREOF TO PAY. THIS ENDORSEMENT IS MADE A PART OF SAID POLICY AND IS SUBJECT TO THE SCHEDULES, CONDITIONS AMID STIPULATIONS THEREIN, EXCEPT AS MODIFIED BY THE PROVISIONS HEREOF. NAITONS TITLE IlNSGRANCE CCNMPAN Y capIFFICERR ENGE 2 - 100 ENDDORSEMENT . NO. 216705-3 ENDCRSEMENT ATTACHED M POLICY ND. M 183-507825 ISSf ED BY NATIMS TITLE INSURANCE CU 4PANY THE CCbTANY ASSURES THE INSURED THAT AT THE DATE OF THIS POLICY THE DIMENSIONS OF THE EXTERIOR BOUNDARY OF THE LAND REFERRED TO IN SCHEDULE A OF THIS POLICY, WHICH IS ALSO THE FKTERIOR BCZUlARY OF THE PROJECT, ARE CORRECTLY SHOWN ON THAT MAP SHOWN ON SSE A OF SAID POLICY, IN THE OFFICE OF THE COUN`IY RECORDER OF SAM COUNTY. THE C CFPANY FURTHER ASSURES THE INSURED THAT THE ESTATE IN SAID LAND REFERRED TO IN SCHEDULE A INCLUDES A DR91 G U T, WITHIN THE PRa ECr BOUNDARIES, AS DESCRIED IN SCHEIU E A, IN THE OFFICE OF THE =?ITY RECORDER DER OF MANGE COUNTY, AND MROfnN AS 409 UTICA AVENUE A5, CITY CF I3Mi'IlMM SE M, OM-11Y OF MANGE, STATE OF allAICIUM. THE COMPANY HEREBY INSURES THE INSURED AGAINST LOSS WHICH SAID INSURED SHALL SUSTAIN IN THE EVENT THAT THE ASSURANCE HEREIN SHALL PROVE TO BE INOIORRECT. THE TOTAL LIABILITY OF THE C av]PANY UNDER SAID POLICY AND ANY INDORSEV!ENTS THEREIN SHALL NOT EXCEED, IN THE AGC.F2FY-.TGE, THE FACE XIOUNT OF SAID POLICY AND COSTS WHICH THE C CMPPANY IS OBLIGATED UNDER THE 0CMITIONS AND STIPULATIONS THEREOF TO PAY. THIS E DORSE R?r IS MADE A PART OF SAID POLICY AMID IS SUBJECT TO THE SC=JLES, CIOMITICNS AND STIPULATIONS THEREIN CONTAINED. VATIC INS TITLE INSURANCE CU4PANY OFFICER 116.2 EMCRESOVOU . Om NO. 216705-3 ENUCRSEMENr AT ACEED TO POLICY ND. M 183-507825 ISSUED 19Y NATIONS TITIL7 INSURANCE COMPANY THE INSURANCE AFFORDED BY THIS ENDORSEMRTT IS ONLY EFFECTIVE IF THE LAND IS USED OR IS TO BE USED PRIMARILY FOR RESIDENTIAL PURPOSES. THE Ca4PANY INSURES THE INSURED AGAINST LOSS OR DANK SUSTAINED BY REASON OF LACK OF PRIORITY OF THE LIED OF THE INSURED MORTGAGE OVER: (a) ANY ENVIRONMENTAL PRC7TECTICN LIEN WHICH, AT DATE OF POLICY IS RECORDED IN THOSE RECORDS ESi'ABLISHED UNDER STATE STNTUTES AT DATE OF POLICY FOR THE PURPOSE OF IMPARTING CONSTRUCTIVE NC)TICE OF MATTERS RELATING TO REAL PROPERTY TO PURCHASERS FOR VALUE AMID WITHOUT KUfnTMGE, OR FILED IN THE RECORDS OF THE CLERK OF THE UNITED STATES DISTRICT COURT IN WHICH THE LAND IS LOCATED, EXCEPT AS SET FORTH IN SCHEDULE B; OR (b) ANY PROTECTICV LIEN PROVIDED FOR BY ANY STATE STATUTE IN EFFECT AT DATE OF POLICY, EXCEPT MaRMEYM PROTECTION LIENS PROVIDED FOR BY THE FOLLOWING STATE S'I'ATUTES: NONE THIS ENDORSEMENT IS MADE A PART OF THE POLICY AND IS SUBJECT TO ALL OF THE TERMS AMID PROVISIONS TIiEREOF AND ANY PRIOR ENDORSEN US THERETO. EXCEPT TO THE EXM?T EXPRESSLY STATED, IT NEITHER MODIFIES ANY OF THE TERMS AND PROVISIONS OF THE POLICY OR ANY PRIOR ENDCRSEMENTS, NOR DOES IT OnIND THE EFFECTIVE DATE OF THE POLICY OR ANY PRIOR RIIDORSEMENTS, NOR DOES IT INCREASE THE FACE AMOUNT THEREOF. NATICNS TITLE INSURANCE QrRPANY r OFFICER 8.1 (ALTA) 110.9 ENDORSEMENT (CT,TA) XONDOM1NiUM PLAN Set e of 3e sr1 r : UNIT A:ZSPACE ➢IMENSION PLAN: SCALE: 1" = 16' iT BUILDING 'A" ''D''• _ LOWER LEVEL 'y UNITS 1 THRU 11 r 11 Adel �� f r Ea1'ER1OR WALL LINE (7YP) � I L6 3I' i R j.66 C L-4_S• ; . s � Taa• 0. a ��" �� 1 � f y I�. 16 W O T1P _ r a c v u `Jt 1 j12 . e .0 4 i� N U N S l Wn^ ' 1 t a 1932• � 6 cD arooc I N — uo ;• 1 1 C M 1 •r- n to I- p C L ` G K• t a a f 1 Qi4 74 7.15 - crn1 Z bo;qk - v =9b *9 69b ;2 i2 -Q ;20 &4W w U a EXTERIDR HALL LNE(TYP) � F E'D- v m�c Z U N L t G .f NOTES: 1. • INDICATES CO?LMON BUILDING CONTROL MINT. 2. SEE SKEET 6 FOR SCUNDARY FLAT. 3. SEE SHEET 7 FOR E:;ILDIKG LOCArIOK PLAN. a. SEE SHEETS 8 THRU 19 FOR L.NZT AIRSPACE DIMENSION PLANS. >� 5. SEE SHEETS 24 THRU 23 FOR SCHEDULES OF TY?ICAL UNIT VERTICAL SECT::NS. C. SEE SHEETS 24 THRU 27 FOR TYPICAL UNIT VERTICAL SECTIONS. 7 . SEE SHEET 28 FOR OPEN PARKING LCCA-410M PLAN. - r • CITY RIDER TO CITY OF HUNTINGTON BEACH DEED OF TRUST AFFORDABLE HOUSING PROGRAM 11ll This rider to the City of Huntington Beach Deed of Trust which was executed by rreckoy rt=c4-r_'?iuwoff rustor for the property located at 4D S ukxn, R S ) is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated 11— 1 , 19-01 to which this rider is attached as Exhibit "U' and incorporated by reference (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of �;�e. r`c�L�-v Dollars ($ 5, Qd C) ) (the "Loan Amount") with simple interest to accrue at five percent (5%) yearly. All terms in this Rider to City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1. Acceleration Due on Sale. A. Except as provided herein, the Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any amortization period longer than the loan secured by the First Mortgage, or (iv) Trustor being in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or (v) Trustor violates any condition of the deed of trust or promissory note, or (vi) the death of Trustor (unless the Trustor's household, occupying the property, contains more than one qualified participant in the affordable housing program pursuant to which this Loan is being made, and at least one qualified participant survives). At the request of Trustor, the City may, in its sole discretion, extend the term of the Loan. 1 7iloandocicitYridrl071 t 2194 CITY CLERK y B. Exception to repayment provision. Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase pried plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one (1) herein, and any pro rata share applicable to any portion of a remaining year. 2. Occupancy Standards. The Property shall be used as the personal residence of Trustor and Trustor's immediate family and for no other purpose. Trustor shall not enter into an agreement for the rental or lease of the Property. 3. Protection of Beneficiary's Rights in the Property. A. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorney's fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section, Beneficiary does not have to do so. B. Any amount disbursed by Beneficiary under this section, shall become additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to Trustor requesting payment. 4. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the 2 7/loan dockityridr107112194 CLERK Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") or second lien held by the Redevelopment Agency of the City of Huntington Beach, as may be evidenced by a Deed of Trust recorded on the Property, shall be prior and superior to the Declaration and this Deed of Trust. In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use df the Property to low or moderate income households or otherwise restricting the Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the Trustor), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 5. Obligation to Refrain from Discrimination_. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; 3) the Redevelopment Agency Deed of Trust; and 4) the City Trust Deed. 3 7/loandocicityridr10 7/1 2194 CITY CLERK The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First Lien deed of trust or mortgage requesting a statutory notice of default as set for the in the California Civil Code. TRUSTOR'S SIGNAT RE * 'CC T USTOR'S SIGNATURE APPROVED AS TO FORM: City A torney 4 711 o a n d o c!c i t yr i d r10 712 519 4 CLT.Y CLERK r. . _'" • AGENCY r � REDEVELOPMENT AGENCY OF HUNTINGTON BEACH NOTICE OF RIGHT OF RESCISSION AFFORDABLE HOUSING'PROGRAM Notice To Customer Required by Federal Law: You have entered into a transaction on , 19 , which may result in a lien, mortgage or other security interest on your home. You have a legal right under federal law to cancel this transaction, if you desire to so, without any -penalty or obligation within three business days from the above date or any later date on which all material disclosures required under the Truth in Lending Act have been given to you. If you so cancel this transaction, any lien, mortgage, or other security interest on your home arising from this transaction is automatically void. You are also entitled to receive a refund of any down payment or other consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying Redevelopment Agency of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Executive Director by mail or telegram sent not later than midnight of , 19—. You may also use any other form of written notice identifying the transaction if it is delivered to the above address not later than that time. This notice may be used for that purpose by dating and signing below. hereby cancel this transaction. (Date) (Participant's Signature) SEE NEXT PAGE FOR IMPORTANT INFORMATION ABOUT YOUR RIGHT OF RESCISSION. 71re sciss 11071251941E CITY n Gpv EXPIRATION OF RESCISSION PERIODS_ Direct Loans (Truth in Lending - Real Estate and Home Improvement Loans) Participant's Name Loan Amount Address of Residence per -Sctr�� Rk"%jera_ as ,o6 --2-q l a ` 7 --X�layz� S�. In connection with the Agreement of the Redevelopment Agency of Huntington Beach to make the loan described above, which will be secured by a deed of trust on the residence at the above address, each of the undersigned hereby represents as follows: 1. The undersigned understands the terms of this Agreement and its attachments. 2. The undersigned has been notified that it must inform the Huntington Beach Redevelopment Agency by today's date should any of them desire to rescind or terminate this transaction. 3. The undersigned acknowledges that this loan has not been funded for at least three days from the date of execution, in order to provide them with an opportunity to rescind should they so desire. 4. The Huntington Beach Redevelopment Agency agreed, subject only to the occurrence of certain conditions,to make the above described loan and delivered to each undersigned a Disclosure Statement setting forth terms of said loan and a Notice of right of Rescission advising each undersigned of their right to rescind and cancel said transaction in accordance with the Truth in Lending Act on or before the date the undersigned executed this document. 5. Prior to the date shown above, no proceeds of said loan have been disbursed to or for the benefit of any of the undersigned. 6. None of the undersigned have canceled or rescinded the above described loan transaction nor have any of the undersigned notified said Agency of any intention to cancel or rescind said loan transaction. The undersigned request the Huntington Beach Redevelopment Agency to proceed with the making of the above described loan in reliance upon the foregoing representations. A - Q C�/l --q 4�1 (7. 1 M,7,— (Participant's Signature) (Date) 1Lr% A— ' t l (Participant's Signature) (Date) 7%resciss I X07l251941B i t`LTY CLERK ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice of Right of Rescission. (Participant's Signature) (Date) (Participant's Signature) (Date) EFFECT OF RESCISSION. When a customer exercises his right to rescind he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within ten (10) days after receipt of a notice of rescission, the creditor shall return to the customer any money or Property given as earnest money, down payment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the customer, the customer may retain possession of it. Upon the performance of the creditor's obligations under this section, the customer shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the customer shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the customer, at the option of the customer. If the creditor does not take possession of the property within ten (10) days after tender by the customer, ownership of the Property vests in the customer without obligation on his part to pay for it. 7lresciss 11U 7/2 5/94XB CLTY CLERK • CITY CITY OF HUNTINGTON BEACH NOTICE OF RIGHT OF RESCISSION AFFORDABLE HOUSING PROGRAM Notice To Customer Required by Federal Law: You have entered into a transaction on 9/1 , 19 c _, which may result in a lien, mortgage or other security interest on your home. You have a legal right under federal law to cancel this transaction, if you desire to so, without any penalty or obligation within three business days from the above date or any-later date on which all material disclosures required under the Truth in Lending Act have been given to you. If you so cancel this transaction, any lien, mortgage, or other security interest on your home arising from this transaction is automatically void. You are also entitled to receive a refund of any down payment or other consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Department of Economic Development by mail or telegram sent not later than midnight of You may also use any other form of written notice identifying the transaction if it is delivered to the above address not later than that time. This notice may be used for that purpose by dating and signing below. hereby cancel this transaction. (Date) (Participant's Signature) SEE NEXT PAGE FOR IMPORTANT INFORMATION ABOUT YOUR RIGHT OF RESCISSION. 7lresciss2107l25l941B CITY CLERK EXPIRATION OF RESCISSION PERIODS Direct Loans (Truth in Lending - Real Estate and Home Improvement Loans) Participant's Name Loan Amount_ Address of Residence kec6 r Zc.i Y- �Je-ro—. 4 S, coo 4 o Ci mcu Si - A S - In connection with the Agreement of the City of Huntington Beach to make the loan described above, which will be secured by a deed of trust on the residence at the above address, each of the undersigned hereby represents as follows: 1. The undersigned understands the terms of this Agreement and its attachments. 2. The undersigned has been notified that it must inform the City of Huntington Beach by today's date should any of them desire to rescind or terminate this transaction. 3. The undersigned acknowledges that this loan has not been funded for at least three days from the date of execution, in order to provide them with an opportunity to rescind should they so desire. 4. The City of Huntington Beach agreed, subject only to the occurrence of certain conditions, to make the above described loan and delivered to each undersigned a Disclosure Statement setting forth terms of said loan and a Notice of right of Rescission advising each undersigned of their right to rescind and cancel said transaction in accordance with the Truth in Lending Act on or before the date the undersigned executed this document. 5. Prior to the date shown above, no proceeds of said loan have been disbursed to or for the benefit of any of the undersigned. 6. None of the undersigned have canceled or rescinded the above described loan transaction nor have any of the undersigned notified said Agency of any intention to cancel or rescind said loan transaction. The undersigned request the City of Huntington Beach to proceed with the making of the above described loan in relian n the foregoing representations. r ' ' / -q,� _ (Participant's Signature) (Date) J4 W, - CQQ-1 l.� ( ahicipant's Signature) (Date) 74esciss2107/25/9418 a Y CLERK ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice of Right of Rescission. (Participant's Signature) (Date) (Participant's Signature) (Date) EFFECT OF RESCISSION. When a customer exercises his right to rescind he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within ten (10) days after receipt of a notice of rescission, the creditor shall return to the customer any money or Property given as earnest money, down payment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the customer, the customer may retain possession of it. Upon the performance of the creditors obligations under this section, the customer shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the customer shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the customer, at the option of the customer. If the creditor does not take possession of the property within ten (10) days after tender by the customer, ownership of the Property vests in the customer without obligation on his part to pay for it. 7lresciss2107/25/941B C0 -C ERK 7r;ANCE=COAST TITLE of LOS A _Es �� rb; - SUS01VISION DEPART71._ti: — RECORDING REQUESTED BY ,\CLor idJCU Ili iiticiai Recorua AND WHEN RECORDED RETURN TO: 9t Ur.-lapWlnty� Lalitorma ' 'Na Q_ RF_rijj-L. IF.rii`i_v RV_P[rFrjP r� i 1� ....�• h r'i.vV The City of Huntington Beach I Fay_ . of t «,. 2000 Main Street a"} ''•�` i Huntington Beach, California 92648 } Attn: City Clerk } [Space Above This Line For Recorder's Use.] REQUESTED°1D gy ORA�VG£ C01, Y HALL SERVICE This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS 94 THIS DEED OF TRUST is made this 1ST day of SEPT, 190, by and among P HECTOR C. RIVERA and ITZIAR*, whose address is ;(Aka '1�elauxre -*--b , (the "Trustor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Trustee") and THE CITY OF HUNTINGTON BEACH, �- a municipal corporation (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. *CUESTA—APARICIO WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said 71c11oandocicitytd17112194 1 CITY CLERK property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated SEPTEMBE'R 1 , 1994, and in that certain Affordable Housing Agreement currently recorded on the property, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1 . To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's .written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be 7`610andocicitytd17112/94 2 C y! presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to'accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 7lcl1oandocicitytd17112194 3 cjrr f 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of _ any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property is directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 7l6l1oandocicitytd17112/94 4 CITY CLERIC 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The 71c11oandocicitytd17112/94 5 CITY CLERK CITY CLERK grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Agency may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Agency or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, 7lcl1oandocicitytd17112/94 6 CITY CLERK shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues; royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing,contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of 71c11oandocicity1dl7l12194 7 OILY CLERK all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, small distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, at,Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 7161oandocicitytd17112194 8 C1jY CLERK 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable change, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is_made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of.an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. 7lcX1oandocicitytd1711 2194 9 CITY CLERK THE UNDERSIGNED TRUSTQR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth. TRUSTOR- By: IL Ir� By: APPROVED AS TO FORM: City Attorney- 71c11oandocicitytd17125194 10 C' Y CLERK REQUEST FO COUNCIL/REDEV MENT AGENCY ACTION APPROVEDQ 4-34 ,Date: July 4 Submitted to: Honorable Mayor/Chairman and City Council/Agency Mem ers Submitted by: Michael T. Uberuaga, City Administrator/Executive Director &e Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic velopment Subject: DOWN PAYMENT ASSISTANCE PROGRAM--PARTICIPANT APPROVAL Consistent with Council Policy? M Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: ' Huntington Beach City Charter, Section 613, requires that each complete contract with a borrower in the Community Development Block Grant and Redevelopment funded Down Payment Assistance Programs must be approved by the City Council/Agency. RECOI IVI ENDED COUNCIL ACTION: 1. Approve and incorporate each listing, which names specific participants, the amount of each loan and the specific property subject to trust deed, into a previously approved sample Down Payment Assistance Loan Agreement (hereinafter "Agreement"). 2. Authorize Mayor and City Clerk to execute each Agreement between the city and/or Agency and each participant as approved herein. 3. Release funds for Down Payment Assistance Program participants. ANALYSIS; As part of the 1993-94 Community Development Block Grant Program the Citizen Advisory Board recommended and the Council approved $200,000 as a pilot program to provide Down Payment Assistance to moderate income households and since that time the details of the program have been approved by the City Council. � ~ 1 RCA ED 94-34 • • July 18, 1994 Page two On November 1, 1993, the Redevelopment Agency approved $400,000 in Redevelopment Housing Set-Aside funds to assist a minimum of fourteen low-income buyers as per Resolution No. 244 in the Brisas del Mar Condominium project. The low-income borrowers herein are participants in this program and some may be participants in the CDBG program as well. Huntington Beach City Charter, Section 613, requires the City Council to approve each contract in writing, including the Down Payment Assistance Program contracts. To complete each Agreement, the listing of potential participants, the amount of money loaned and the property subject to trust deed must be approved and incorporated into the Agreement by the City Council (see attached listing). It is recommended by staff that each listing be incorporated in the Agreement and approved at this time. Additional borrowers will be recommended until the funds are expended. ALTERNATIVES: Do not approve the participants. FUNDING SOURCE: Community Development Block Grant - $200,000 total appropriation. Account Balance - $49,701.50. RedeveIopment Agency Housing Set-aside - $400,000 total appropriation. Account Balance - $241,283.00 MTU/BAK/SVK:jar 1140j DOWN PAYMENT ASSISTANCE PROGRAM Loan Location of Property Name Amount Subject to Trust Deed 94-14 Rivera, Hector & Iciar $25,000 (Set-Aside) 409 Utica Avenue A5 $ 5,000 (CDBG) 94-15 John Melkerson/Jeff Uniack $10,000 (CDBG) 409 Utica Avenue 41 94-16 Rene, Shannon & Traci Wright $10,000 (CDBG) 409 Utica Avenue C24 $15,000 (Set-Aside) 94-17 Theresa Quick $ 4,350 (CDBG) 409 Utica Avenue A9 $25,000 (Set-Aside) Note: Borrowers have received "conditional loan approval" from Sanwa Bank and City/Agency approval is subject to "final approval" by the bank. N. Page- 10-CounciVAgency Agenda- 10/25/93 (10) :�;, E-15.(City Council) OFFICE OF CRIMINAL JUSTICE PLANNING GRANT(CAREER CRIMINAL APPREHENSION PROGRAM) MULTI-JURISDICTIONAL CRIME ANALYSIS UNIT (CAU) - CONTRACT FOR COMPUTER CONS!JLTING `} SERVICES - PAUL R, GILON, PH.D. -Approve and authorize execution of ' ..' , Professional Services Contract between the City of Huntington Beach and Paul R. Gilon, Ph.D. for Consulting Services in Computer Consulting and Training in order to provide for the continuity of the operation of a multi-jurisdictional Crime Analysis Unit (CAU) at a fee not to exceed $13,000. (Cities of Irvine, Costa Mesa, Newport Beach, Fountain Valley, Seal Beach, Westminster and the Orange County Sheriffs Department) Prepared by Police Department. (600.10) ;:. O E-16. (Cites/ Council) APPROVAL OF LOAN DOCUMENTS & BORROWERS - s DOWNPAYMENT ASSISTANCE PROGRAM - COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM - RESOLUTION NO. 6537 - "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING "= EXECUTION BY THE DIRECTOR OF ECONOMIC DEVELOPMENT OF LOAN AGREEMENTS FOR LOANS FUNDED THROUGH THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM." and (1) Approve and authorize the use of the attached Loan Agreement, form of Note and Deed of Trust as prepared by the City Attorney and to be prepared individually for each approved borrower in the Down Payment Assistance Program, and (2) Approve and authorize execution of the appropriate documents and payment of the appropriate funds to the recommended participants in the Down Payment Assistance Program and deny one application from a non-first ti e buyer as listed in Attachment No. 1. (340.70) J sj� a-rr�^ rS -t Reams ` 0 C44`( Q3 '�rso, 6 grpplJkr aMr \own Sobm-�'t't* 3`i � E-17.(City Council/Redevelopment Agency) BRISAS DEL MAR - SECOND TRUST O 9 UT C - o Y\o DEED PROGRAM - RESOLUTION N . 244- 40 I A AVENUE Approve the following.actions: � ,y� 1. Approve the appropriation of a maximum of$400,000 of redevelopment set aside` Air, housing trust funds for a second trust deed program for low-income buyers at Brisas del Mar; 2. Approve the appropriation of $100,000 in CDBG funds for down payment assistance to be used for any of the 44 eligible households; 3. Approve the loan documents, as submitted, to be used as standard loan documents for the second trust deed program, with minor modifications as required by each participating lender; :fit 4. Approve Resolution No. 244, "A RESOLUTION OF THE REDEVELOPMENT - AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING EXECUTION BY THE DIRECTOR OF ECONOMIC DEVELOPMENT OF LOAN AGREEMENTS FOR LOANS FUNDED BY HOUSING SET ASIDE MONIES." authorizing the appropriate City and Agency officials to sign all documents required and file for E . recording,with the county; 5. Approve the submitted list of applicants to receive Agency loans under the second trust deed program.' Loans will be made only to qualified borrowers meeting the Y Agency approved guidelines. (340.70) D,, A k3 -7'�) CA4 t' inn5io� 10 F